A dividend is the profit one can earn by investing in stocks. On today’s market there are two possibilities: one can choose to invest into stocks that offer dividends, and this means the investor receives a certain profit (a percentage) of the amount invested and one can choose to invest without requiring dividend fixed earnings. Instead, the money otherwise going towards the investor (his share of profit), the companies will use that money towards reinvestment. This means that by reinvesting that share companies will know a greater profit, thus the investor’s share will also be higher.

The general view is that investing in a stock which comes without fixed dividends and allowing instead the company to use that percentage towards reinvestments is many times a more profitable venture.