Part of a corporation’s profit that the company pays to stockholders.
dividend
Dividend is part of a corporation’s profit that the company pays to the shareholders of the company based on their share ownership. It is a distribution of a portion of the company’s earnings to shareholders usually in the form of cash, additional shares of stock or other property. Dividends are usually paid out quarterly and the amount paid is decided by the board of directors and approved by the shareholders. The payment of dividends can be an indication of the financial health of a company and its ability to generate good profits consistently. Dividends are a way of returning wealth to shareholders and are an important consideration for investors who are looking for regular income and long-term capital appreciation.
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