ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A dividend is a distribution of a portion of a company’s earnings to its shareholders. Dividends are paid out either by cash or additional stock, and they offer a good way for companies to communicate their financial stability and profitability to the corporate sphere in general.

Detailed explanation-2: -A dividend is a portion of the company’s profits paid to its shareholders. Profits represent ownership of shares of a company. Risk is only associated with the purchase of common stocks.

Detailed explanation-3: -Dividends are distributions of property a corporation may pay you if you own stock in that corporation. Corporations pay most dividends in cash. However, they may also pay them as stock of another corporation or as any other property.

Detailed explanation-4: -1. Which of the following is true of dividends? Answer: Dividends are a distribution of cash, stock, or other assets to the stockholders. Explanation: Dividends are a payment to shareholders out of a company’s retained earnings.

Detailed explanation-5: -Key Takeaways. A dividend is the distribution of corporate earnings to eligible shareholders. Dividend payments and amounts are determined by a company’s board of directors. The dividend yield is the dividend per share, and expressed as a percentage of a company’s share price.