Thinking of buying shares in a company but not sure how it will benefit you? Well, if the company performs strongly, you might get a dividend. What exactly is a dividend payout? 💰 You’re effectively becoming a company's part-owner when you purchase its shares. So, you'll be entitled to a share of the company's earnings, which come from dividends. Companies usually pay their investors once or twice a year as long as they’re happy they have enough net assets. These dividends are considered taxable income in your tax return, so you must pay tax on your marginal tax rate. But some dividends will have a tax credit (known as franking credit), so you get to offset the extra tax you will pay with this. You should know, though, that not all companies pay dividends. Some might choose to reinvest the profits to support the company’s growth. The goal is to increase your shares' value in the long term. 📈 Whether you’re looking to boost your cash flow or strengthen your capital growth, investing in a company that shares similar goals can land you massive success…