I recently asked 500 people whether dividends were a capital gain. Have a think about that answer. 30% think that they are. A reminder that dividends are a form of payment from a company's profits. Dividend - a sum of money paid by a company to its shareholders out of its profits (or reserves). One of the benefits of investing is that you get to learn more about how finance works. You start to learn the language of shares, dividends, imputation credits, taxes, realised vs unrealised etc.

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