Dividend

A dividend is a portion of a company’s profit distributed to its shareholders as a reward for their investment in its stock. Dividends can be paid in various forms, including cash, additional shares, or other pre-defined methods decided by the company. Dividends are typically paid on a regular schedule, such as quarterly, semi-annually, or annually. Special dividends may also be issued as one-time payments. For example, a company may announce a dividend of $2 per share, meaning an investor holding 50 shares would receive $100 in dividend income. Dividends are particularly appealing to income-focused investors and indicate a company’s financial health and profitability.