ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Cash – this is the payment of actual cash from the company directly to the shareholders and is the most common type of payment. The payment is usually made electronically (wire transfer), but may also be paid by check or cash. Stock – stock dividends are paid out to shareholders by issuing new shares in the company.

Detailed explanation-3: -A dividend is a distribution of a portion of a company’s earnings, decided by the board of directors. The purpose of dividends is to return wealth back to the shareholders of a company. There are two main types of dividends: cash and stock.

Detailed explanation-4: -What is dividend per share? Dividend Per Share (DPS) is the total amount of dividends attributed to each individual share of a company’s outstanding stock. Calculating the dividend per share allows an investor to assess how much money he or she will receive from the company on a per-share basis.

Detailed explanation-5: -These dividends are typically paid on a per-share basis, meaning a shareholder receives a set amount of money for every share they own. For example, if an investor owns 100 shares of a stock that pays a cash dividend of $0.25 per share, the shareholder would receive an extra $25 from the company.