WALL STREET × GAME DAY
What are dividends? A dividend is a cash payment a company sends to its shareholders, usually four times per year (quarterly). It comes directly from company profits. If you own shares in a company that pays a $1.50 annual dividend and you hold 100 shares, you receive $150 per year in cash — just for owning the shares.
MarketMVP calls dividends the "Guaranteed Salary." Think of it this way: owning a high-dividend stock is like having a player on contract with a guaranteed annual salary. You get paid whether the team wins or loses, whether the stock price goes up or down.
Growth stocks (NVDA, TSLA) pay little or no dividend — they reinvest profits into expansion. That's the performance bonus model. Dividend stocks (KO, JNJ) share profits with you every quarter. That's the guaranteed contract model.
Dividend Yield = (Annual Dividend per Share ÷ Share Price) × 100
Example: KO pays approximately $1.94 annually per share. Share price approximately $62. Yield = (1.94 ÷ 62) × 100 = 3.1%.
| STOCK | APPROX YIELD | CONSECUTIVE YEARS INCREASED | SECTOR |
|---|---|---|---|
| PG (Procter & Gamble) | ~2.4% | 67 years | Consumer |
| JNJ (Johnson & Johnson) | ~3.3% | 62 years | Healthcare |
| KO (Coca-Cola) | ~3.1% | 62 years | Consumer |
| ABBV (AbbVie) | ~4.0% | Growing | Healthcare |
| CVX (Chevron) | ~3.9% | 37 years | Energy |
Most brokerages offer DRIP (Dividend Reinvestment Plans) — they automatically use your dividend cash to buy more shares. Over decades, this compounding effect is where the majority of total long-term returns actually come from. The same investment in KO with dividends reinvested versus taken as cash produces dramatically different outcomes over 20-30 years.
Educational purposes only. MarketMVP OVR scores, tiers, and athlete comparisons are proprietary educational tools — not financial advice, investment ratings, or recommendations to buy or sell any security. Always conduct your own research. Full disclaimer