dividend
DefinitionA taxable payment declared by a company's board of directors and given to its shareholders out of the company's current or retained earnings, usually quarterly. Dividends are usually given as cash (cash dividend), but they can also take the form of stock (stock dividend) or other property. Dividends provide an incentive to own stock in stable companies even if they are not experiencing much growth. Companies are not required to pay dividends. The companies that offer dividends are most often companies that have progressed beyond the growth phase, and no longer benefit sufficiently by reinvesting their profits, so they usually choose to pay them out to their shareholders. also called payout.
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dividend is ...
... part of the Dividends, Earnings, Stocks, Taxes and Investor Relations subjects.
... part of the Dividends, Earnings, Stocks, Taxes and Investor Relations subjects.
... #67 on our list of the most popular terms.
... an essential investing term.
Related Terms
yield -
accumulated earnings tax, adjustable rate preferred stock, cumulative dividend, bear trap, record date, payable date, declaration date, declare, disbursing agent, distribution and
dividend appears in these other terms
insurance company dividend, Dow dividend theory, dividend clientele, dividend rate, dividend in arrears
dividend appears in the definitions of these other terms on BusinessDictionary.com
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