What is a dividend?

A dividend is a payment made by a company to its shareholders from its profits. It is a regular payment that a shareholder receives, usually in the form of cash or additional shares. Dividends are paid out as a way for companies to distribute their profits among shareholders and create a sense of return on investment. Dividends are often seen as a sign of a company's financial stability and can be an important factor in attracting and retaining investors. The amount of dividend paid out can vary depending on the company's financial performance, with those that perform well paying out higher dividends than those that do not perform as well.

This mind map was published on 19 April 2023 and has been viewed 140 times.