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Dividend




When companies pay part of their profits to shareholders, those payments are called dividends. A portion of a company’s profit paid to common and preferred shareholders.

A mutual fund's dividend is money paid to shareholders that comes from the investment income the fund has earned. This amount is announced before it is paid and is distributed to shareholders of record on a per share basis.


Additional Comments:

Dividends may be in the form of cash, stock, or property.

The board of directors must declare all dividends.

Related Terms:

Cash Dividends
A cash dividend is a dividend paid in cash. To be able to pay cash dividends, ...

Property Dividends
A property dividend is a dividend paid in a form other than cash or the company's ...

Capital Gain
The profit realized when a capital asset is sold for a higher price than the purchase ...





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