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.


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.




How and Why Do Companies Pay Dividends? - Explore arguments for and against company dividend policy, and learn how companies determine how much to pay out.

The Importance of Dividends - Seven words that are music to investors' ears? "The dividend check is in the mail."

Back In Vogue: Dividends - Aside from option strategies, dividends are the only way to profit from ownership of stock without selling your stake in the company.

Declaration, Ex-dividend And Record Date Defined - Understanding the dates of the dividend payout process can be tricky. We clear up the confusion.

Dividends, Interest Rates and Their Effect on Stock Options - Learn how analyzing these variables are crucial to knowing when to exercise early.
Related Terms

Cum Dividend

Declaration Date

Dividend Payout Ratio

Equalizing Dividend

Ex-Date

Ex-Dividend

Holder of Record

Payment Date

Record Date

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