Dividend
A cash payment companies make to shareholders, usually quarterly. Example: Apple pays ~$0.25 per share every 3 months. It's like earning interest for holding the stock.
Dividend Yield
Annual dividend as a percentage of the stock price. A $100 stock paying $3/year has a 3% yield. Higher yield = more income per dollar invested. But unusually high yields (8%+) may signal trouble.
Ex-Dividend Date
The cutoff date. You must own the stock BEFORE this date to receive the next dividend. Buy on or after this date and you miss the payment.
Payout Ratio
What percentage of earnings the company pays as dividends. 40% = healthy (keeps 60% for growth). 90%+ = company is paying out almost everything, which may not be sustainable.
EPS (Earnings Per Share)
The company's profit divided by total shares outstanding. Higher EPS = more profitable per share. The most basic measure of "how much money is the company making?"
P/E Ratio
Price divided by earnings. A P/E of 20 means you're paying $20 for every $1 of annual profit. Lower P/E = cheaper stock (value play). Higher P/E = investors expect fast growth (growth play). Average S&P 500 P/E is ~20-25.
Earnings Surprise
The difference between what analysts predicted and what the company actually earned. A positive surprise (+5%) means the company beat expectations — usually bullish. Negative surprise = missed expectations — usually bearish.
Market Cap
The total value of all the company's shares. Stock price x total shares = market cap. Large cap ($10B+) = stable blue chips. Mid cap ($2-10B) = moderate growth. Small cap (<$2B) = higher risk/reward.