A stock dividend is money that a company pays to its shareholders, usually in cash or extra shares, as a reward for owning its stock. It’s a way for companies to share part of their profits with investors. If the dividend is paid in cash, the money goes straight into your account. If it’s paid in shares, you simply get more stock without having to buy it.

Yes. Once you own the stock before the ex-dividend date, the dividend is already yours. You can sell the shares the next day (on or after the ex-dividend date) and you will still receive the dividend payment on the company’s payout date.

Not really. Growth companies, especially in technology and fast expanding industries, usually keep their profits and reinvest them to grow the business. For example, companies like Amazon or Tesla focus on growth rather than paying dividends. This means if you buy growth stocks, you’re betting more on future price increases than on dividend payments.