Common stock dividend

Imagine you have a big bag of candy. Each piece of candy is like a little piece of a company that you own. When that company makes good profits, they want to share those profits with you, because you own a little piece of the company. They do this by giving you some of that candy.

That candy they give you is called a dividend. It's kind of like a reward for being a good owner and for letting the company use some of your candy to do business.

Now, there are two types of candy in your bag: common candy and special candy. Common candy is like regular candy that everyone gets, and special candy is like a treat that only some people get. When a company gives you a common stock dividend, they are giving you some of the regular candy that everyone who owns a piece of the company gets.

This is different from a special stock dividend, where the company might give you some of their special candy as a reward for something extra special happening. But for now, let's just focus on common stock dividends.

So, if you own a piece of a company and they start making a lot of profits, they might decide to give you some of that candy in the form of a common stock dividend. This means you get a special treat for being a good owner!