What does dividend mean?

Definition of Dividend, Dividend Meaning - The Economic Times Definition: Dividend refers to a reward, cash or otherwise, that a company gives to its shareholders. Dividends can be issued in various forms, such as cash payment, stocks or any other form.

What is a special dividend?

Special dividends might be one-off payouts from a company that doesn’t normally offer dividends, or they could be extra dividends in addition to a company’s regularly scheduled dividends. Companies generally announce special dividends when they’ve been especially profitable and want to share earnings among shareholders.

What is an example of a dividend?

These payments are called "dividends." For example, Company XYZ earned a substantial profit over the past year. As a result, the board of directors has approved a cash dividend of $2 per share to be paid to investors each quarter for the next year. Dividends are an important aspect of owning shares.

How do dividends work?

Dividends are often distributed quarterly and may be paid out as cash or in the form of reinvestment in additional stock . The dividend yield is the dividend per share and is expressed as dividend/price as a percentage of a company's share price, such as 2.5%.