A dividend is simply a payment that is rewarded to an investor when their specific stock earns money and distributions occur. For instance, imagine the Boston Breakers women’s soccer team as a specific company. The players can be viewed as investments that encompass the company (the entire team). Whenever these women perform well and win matches on a national scale, the owners of the team (or the investors), earn additional income because of positive performance (a dividend). The owners of the team can earn money through increased ticket sales, merchandise, and advertisement dollars if the Breakers gain popularity because of its exceptional performance.