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What is a dividend?

Updated over 10 months ago

Dividends are one of the most straightforward ways companies share their success with investors. If you’ve ever wondered how investors make money without selling their shares, dividends are often the answer.

What Is a Dividend?

A dividend is a payment made by a company to its shareholders—usually as a portion of its profits. It’s a way of saying, “Thanks for investing in us.”

Companies that pay dividends typically do so on a regular schedule, often quarterly, semi-annually, or annually. These payments can come in the form of:

  • Cash (direct deposit or check)

  • Additional shares

Dividends are especially common in well-established industries like energy, finance, and real estate—where cash flow tends to be stable and predictable.

Why Do Companies Pay Dividends?

Dividends attract investors looking for:

  • Regular income, without needing to sell their shares

  • Lower volatility, since dividend-paying companies are often more mature and less speculative

  • Compounding, if dividends are reinvested to buy more shares over time

For many investors, dividends are part of a long-term strategy—helping them earn consistent returns while still staying invested in the company’s future.

How Worthy Senior Living Applies These Principles

Worthy Wealth Senior Living uses a dividend-based model to deliver value to investors. Here’s how it works:

  • Dividends begin accruing the day you invest

  • The first dividend payout is scheduled for June 30, 2026, after a full year of accumulation

  • After that, dividends are paid quarterly

  • The dividend rate is 5% annually for the first three years, increasing to 7% annually thereafter

  • If and when the properties are sold, two things happen:

    • You’ll receive your original $10 per share investment back (return of capital), tax-free

    • You’ll also receive your pro rata share of 60% of the net profits, paid out as a taxable dividend

This structure provides a clear combination of quarterly dividend income, a return of capital when assets are sold, and the potential for long-term profit participation—all of which are tracked transparently in your account.

Understanding dividends is a powerful step in building long-term wealth. If you’re seeking a mix of consistency and growth, dividend-based investing might be the right fit for your portfolio—and we’re here to make it simple.

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