What are dividends?
Profit distributions to the owners (stockholders).
Dividends are a distribution of profits or earnings that a company pays to its shareholders. When a company earns a profit, it has the option to either reinvest those profits in the business or distribute them to the shareholders as dividends. Dividends are typically paid out in cash, but they can also be distributed in the form of additional shares of stock, property, or other assets. The amount of dividends paid out by a company can vary from quarter to quarter or from year to year depending on the company’s profitability and financial performance. Dividends are an important way for investors to earn a return on their investment, and they can also be an indicator of a company’s financial health.
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