Mar
19
What is a Dividend?
Category: General | 
A dividend is a payment made from the profits of a company based on the percentage of shares held by its shareholders. This can be paid out in one of two different ways, either cash cheques to shareholders given monthly, quarterly or annually, or via retained income which is reinvested back into the company. However, dividend payments are not considered to be a business expense, but a division of profits between shareholders. Companies will retain their share of company profits immediately, but pay out the balance at agreed times to their shareholders. Dividends can also be sent out on random dates and are subsequently called special dividends.
