ECONOMICS (CBSE/UGC NET)

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: -Total return, often referred to as “return, ” is a very straightforward representation of how much an investment has made for the shareholder. While the dividend yield only takes into account actual cash dividends, total return accounts for interest, dividends, and increases in share price among other capital gains.

Detailed explanation-3: -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. A company’s dividend is decided by its board of directors and it requires the shareholders’ approval.

Detailed explanation-4: -Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders’ equity.1 Because shareholders’ equity is equal to a company’s assets minus its debt, ROE is considered the return on net assets.

Detailed explanation-5: -Total shareholder return equals the profit or loss from net share price change, plus any dividends received over a given period.