Dividend

Overview

A dividend is a portion of a company's profits distributed among its shareholders, typically on an annual or quarterly basis.

Common Use Cases

• Rewarding shareholders.
• Strengthening investor confidence.
• Attracting new investors.
• Maintaining positive shareholder relations.

Examples in Small Businesses

• Distributing profits at the end of the year.
• Deciding how much to reinvest or distribute.
• Keeping shareholders informed about financial performance.