BANKING AFFAIRS

Detailed explanation-1: -What Is a Dividend? A dividend is the distribution of a company’s earnings to its shareholders and is determined by the company’s board of directors. Dividends are often distributed quarterly and may be paid out as cash or in the form of reinvestment in additional stock.

Detailed explanation-2: -A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-invested in the business (called retained earnings).

Detailed explanation-3: -What Is a Stock Dividend? A stock dividend is a payment to shareholders that consists of additional shares rather than cash. The distributions are paid in fractions per existing share. For example, if a company issues a stock dividend of 5%, it will pay 0.05 shares for every share owned by a shareholder.

Detailed explanation-4: -In business, it is used to define the portion of earnings that a company distributes among shareholders each year. In other words, dividends are the income that the owners of the shares obtain as consideration for having invested in the company.

Detailed explanation-5: -Dividends are payments a company makes to share profits with its stockholders. They’re paid on a regular basis, and they are one of the ways investors earn a return from investing in stocks. But not all stocks pay dividends.