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.
| Term of the Day | Words to Know | | | | Dividend | A dividend is the distribution of a portion of the company's earnings, decided and managed by the company's board of directors, and paid to a class of its shareholders. Common shareholders of dividend-paying companies are typically eligible as long as they own the stock by the ex-dividend date. Dividends may be paid out as cash or in the form of additional stock. | Read More » | SPONSORED BY INVESCO | The Complete Guide to ETFs | ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. | Learn More » | | Board of Directors | A board of directors is a group of individuals elected to represent shareholders and establish and support the execution of management policies. | Read More » | | Retained Earnings | Retained earnings are the cumulative net earnings or profit of a firm after accounting for dividends. Some people refer to them as the earnings surplus. | Read More » | | Payment Date | The payment date is the date set by a company when it will issue payment on the stock's dividend. | Read More » | | | | | CONNECT WITH INVESTOPEDIA | | | | | |
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