A dividend is a payment made by a corporation or company to its shareholders as a distribution of profits. When a company generates profits, it can choose to reinvest those profits back into the business or distribute them to its shareholders in the form of a dividend. Dividends are typically paid out in cash, but can also be paid out in the form of additional shares of stock or other property. The amount of the dividend paid to each shareholder is determined by the company’s board of directors and is typically based on the number of shares owned by the shareholder. Dividends can be a source of income for investors, particularly those who are seeking stable and predictable returns.
What is a Dividend?
