Term Definition
Dividend Dividends generally represent a share in the profits of the company and are paid out to a company’s shareholders at set times of the year.
Capital Refers to the financial assets, or resources, that a company has to fund its business operations.
Compounding Occurs when an investment generates interest or dividend income that is then reinvested and able to generate further income.
Yield This refers to the dividends received from shares and is usually expressed annually as a percentage based on the investment's cost, its current market value or face value.