What's the Deal with Dividends?

Many investors may choose dividend-paying stocks with the hopes of earning consistent income through payouts that aren't tied directly to a stock's performance. But what are dividends, exactly? A dividend represents a portion of a company's value being distributed to shareholders.

DISCLOSURES: 

Dimensional makes no representation as to the suitability of any advisor, and does not endorse, recommend, or guarantee the services of any advisor.

All expressions of opinion are subject to change. This content is distributed for informational purposes and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services.

©2025 Dimensional Fund Advisors LP. All rights reserved

Indices are not available for direct investment. Their performance does not reflect the expenses associated with management of an actual portfolio.

Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.

Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

This video is provided for informational purposes only and should not be construed as a solicitation, recommendation, or endorsement of any specific security, product, service, strategy, or individual. It should also not be considered investment, tax, or legal advice. Investing involves risks, including potential loss of principal, and there is no guarantee that any strategy will be successful. Past performance is not indicative of future results, and no investment decisions should be based solely on the content of this video.

Any appearances by non-affiliated individuals, including third-party quotes, references, or likenesses, do not constitute an endorsement, testimonial, or recommendation by Index Fund Advisors, Inc. (IFA). The inclusion of this video on our site does not imply that IFA endorses, agrees with, or guarantees the content, views, or opinions expressed.

This video was originally released in July 2025 and is produced by and is shared here with permission from Dimensional Fund Advisors. Viewers are encouraged to visit the original video source for more information. The video may not be further redistributed or republished without permission from the original creator.