Dividend
Dividend is a financial concept that refers to the distribution of profits that a company makes to its shareholders. It represents a portion of the profits a company has generated and is usually paid out periodically, often in the form of cash, but sometimes in additional shares.
Dividends: Distributions to shareholders.
Companies decide to pay dividends to reward investors who own shares in the company. This distribution is a way for shareholders to share in profits and value their investment. The amount of the dividend per share is usually determined by the board of directors and can vary depending on the company's financial performance and strategic objectives.
Dividends can be an attractive source of income for investors, especially those looking for steady cash flow. It is also an important indicator of a company's financial health, as companies typically pay dividends only when they have made sufficient profits. Investors often use dividend yield as a measure to make investment decisions and to compare the performance of different investments.
