A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
| Dividend | A dividend is the distribution of reward from a portion of company's earnings, and is paid to a class of its shareholders. Dividends are decided and managed by the company's board of directors, though they must be approved by the shareholders through their voting rights. Dividends can be issued as cash payments, as shares of stock, or other property, though cash dividends are the most common. Along with companies, various mutual funds and exchange traded funds (ETF) also pay dividends. | Breaking it Down: | Dividend is a token reward paid to the shareholders for their investment in company's equity, and it usually originates from... | Read More » | Dividend Yield | A financial ratio that shows how much a company pays out in dividends each year relative to its share price. | Read More » | | Dividend Signaling | Dividend signaling suggests that a company announcement of an increase in dividend payouts is an indicator of its strong future prospects. | Read More » | | Equalizing Dividend | An equalizing dividend is a one-time payment to make shareholders whole after a company adjusts or moves the dividend schedule. | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | |
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