A dividend is a payment made by a corporation to its shareholders, usually in the form of cash or additional shares of stock.
A dividend represents a portion of the company’s profits that is distributed to the shareholders as a return on their investment.
Dividends are typically declared by the company’s board of directors and are distributed regularly, often on a quarterly basis. Not all companies pay dividends, as some may choose to reinvest their profits back into the business for growth or other purposes.
