Everybody likes getting the news that they’ve got some dividends on the way! (Yes please!) As you may know by now, a dividend is a sharing out of a portion of a company's profits to its shareholders. Warren Buffett, a super smart and rich investor (big deal), likes investing in dividend paying companies and then re-investing his dividends to boost his returns. Some people prefer to use dividend pay-outs as a way to earn passive income; getting little chunks of money throughout the year that they can supplement their income with (ehem, Christmas presents?).