Whilst the basis of this eBook is the Australian market, the concepts and methods apply to global markets as well.

Dividends in the Australian market are especially important to a large portion of investors, namely retirees, as some of the largest, safest and well respected companies pay very high dividends which are pursued with vigour. 

A dividend is a sum of money paid regularly by a company to its shareholders out of its profits or cash reserves. In Australia dividends are paid bi-annually whereas in the US most companies pay dividends quarterly. The consistent payment of dividends constitutes an income for many investors, although higher dividend paying stocks tend to have lower growth potential. Some investors like trading for dividends. The popularity of dividend yielding stock has grown since the GFC as western economies have decreased interest rates on term deposits and bonds to all-time low levels.

There are a number of dividend specific terms used in thsi eBook. They are explained in the book or you can view a Glossary of trading & stock markt terms here.