Dividends

About Dividends

Dividends are payments made by a corporation to its shareholders. They are typically paid in the form of cash or additional shares of stock and are distributed from the company's profits or reserves. Dividends can be paid out on a regular basis, such as quarterly or annually, or they can be paid out on an irregular basis at the discretion of the company's board of directors.

There are two main types of dividends:

Cash dividends: These are payments made to shareholders in the form of cash, usually in the form of a check or direct deposit.

Stock dividends: These are payments made to shareholders in the form of additional shares of stock, rather than cash. The number of additional shares received is usually based on the number of shares the shareholder already owns.

Dividends are typically paid to common shareholders, but preferred shareholders may also be entitled to receive dividends. The amount of the dividend and the frequency of dividend payments can vary based on the financial performance of the company and the decisions of its board of directors. Some companies may choose not to pay dividends at all, or may suspend dividend payments during times of financial difficulty.