dividend

Also known as corporate dividend, cash dividend

A dividend is the 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). The current year's profit as well as the retained earnings of previous years are available for distribution; a corporation is usually prohibited from paying a dividend out of its capital. Distribution to shareholders may be in cash (usually by bank transfer) or, if the corporation has a dividend reinve

AI overview

A dividend is a payment that a corporation makes to its shareholders from its profits. Companies can choose to distribute some of their earnings to shareholders as dividends or reinvest the money back into the business, which gives shareholders a direct financial benefit from owning company stock.

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~26 min read

Article

20 sections

Contents

History
Forms of payment
Payout ratio
Dividend dates
Dividend frequency
Dividend reinvestment
Law and government policy on dividends
Australia and New Zealand
India
United States and Canada
United Kingdom
Effect on stock price
Criticism and analysis
Tax implications
Other corporate entities
Cooperatives
Trusts{{anchor|Dividends from trusts}}
See also
References
External links

The dividend received by a shareholder is treated as the income of the shareholder and may be subject to income tax (see dividend tax). The tax treatment of this income varies considerably between jurisdictions. The corporation does not receive a tax deduction for the dividends it pays.