Dividend Definition
A dividend is a payment made by a corporation to its shareholders, typically in the form of cash or additional shares of stock, as a distribution of profits. Dividends are often declared and paid regularly, usually on a quarterly basis, although they can be issued less frequently or as one-time special dividends. Companies that pay dividends typically do so as a way to share their profits with shareholders and provide them with a return on their investment.
What are the different types of dividends?
Some common types of dividends include:
- Cash Dividends
- Stock Dividends
- Special Dividends
- Preferred Dividends
- Dividend Reinvestment Programs (DRIPS)
