A dividend is a distribution of a portion of a company’s profits to its shareholders. It represents the amount of money that a company pays out to its shareholders as a return on their investment. Dividends are typically paid in cash, but they can also be issued in the form of additional shares of stock or other property.
Dividends are declared by a company’s board of directors and are usually paid on a regular basis, such as quarterly, semi-annually, or annually. The amount of the dividend can vary and is determined by the company’s financial performance, profitability, and the board’s decision.