What Is Dividend? Meaning & Example
Definition
A dividend is a payment a company makes to its shareholders, usually from profits. Dividends are typically paid in cash on a regular schedule, but they are never guaranteed.
Related terms
Dividend yield is the annual dividend per share divided by the share price, expressed as a percentage. It shows the income return from dividends alone.
Payout RatioThe payout ratio is the share of a company's earnings paid out as dividends. Very high ratios can mean the dividend is hard to sustain.
Blue-Chip StockA blue-chip stock belongs to a large, well-established and financially strong company. These companies often have long track records and may pay steady dividends.
What is Dividend?
A dividend is a payment a company makes to its shareholders, usually from profits. Dividends are typically paid in cash on a regular schedule, but they are never guaranteed.
Can you give an example of Dividend?
If a company pays a $0.50 quarterly dividend and you own 100 shares, you receive $50 each quarter.