ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Dividend is: “A portion of the company’s earnings distributed amongst its class of shareholders decided upon by the directors.” Companies distribute a dividend in the form of a quarterly payment paid to shareholders for each share they own. This provides the investors a stream of income.

Detailed explanation-2: -Total return: This is the increase in stock price (known as capital gains) plus dividends paid. For example, if you pay $10 for a stock that increases in value by $1 and pays a $0.50 dividend, then that $1.50 you’ve gained is equivalent to a 15% total return.

Detailed explanation-3: -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-4: -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.

Detailed explanation-5: -A company’s dividend yield can be calculated by taking the annual per-share dividend and dividing it by the price of the stock. This percentage, or yield, can be used to compare opportunities across different companies, mutual funds or ETFs and help you determine where to get the most for your money.