Definition
A distribution of a portion of a company's earnings paid to its shareholders, usually in cash but sometimes in additional shares or other assets. Dividends are typically approved by the company's board of directors and represent a return on investment for shareholders.
Example Usage
The utility company has increased its dividend payments for 25 consecutive years, making it a Dividend Aristocrat.”
Related Terms
StocksYieldPayout RatioEx-Dividend DateDividend Reinvestment Plan (DRIP)Income InvestingDividend Aristocrat
Tags
Fixed IncomeCorporate FinanceInvestment
Course Module
Module 1: Introduction to Financial Markets