dividend

Dividend

Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The amount of a dividend is quoted in the amount each share receives or in other words dividends per share.

Notes:

Dividends may be in the form of cash, stock, or property. Most secure and stable companies offer dividends to their stockholders. Their share prices might not move much, but the dividend attempts to make up for this.

High-growth companies don't offer dividends because all their profits are reinvested to help sustain higher-than-average growth.

See also: Cum Dividend, Declaration Date, Dividend Payout Ratio, Equalizing Dividend, Ex-Date, Ex-Dividend, Holder of Record, Payment Date, Record Date

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Dividend

A portion of a company's profit paid to common and preferred shareholders. A stock selling for $20 a share with an annual dividend of $1 a share yields the investor 5%.

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dividend

A share of a company's net profits distributed by the company to a class of its stockholders. The dividend is paid in a fixed amount for each share of stock held. Although most companies make quarterly payments in cash (checks), dividends also may be in the form of property, scrip, or stock. Unlike interest on a debt, dividends must be voted on by the company's directors before each payment. See also bond dividend, capital dividend, cash dividend, consent dividend, constructive dividend, declaration date, declared dividend, ex-dividend date, final dividend, illegal dividend, interim dividend, liability dividend, liquidating dividend, optional dividend, stock dividend.