A Dividend is the distribution of a company's earnings to its shareholders and is determined by the company's board of directors. The payment of dividends usually occurs on a quarterly basis, but there are some companies that pay their dividends annually. Dividends can be in cash or stock and are typically paid out in proportion to the number of shares an individual owns.There are several factors that go into whether or not a company will pay a dividend, including its profitability, financial stability, and future prospects. Some investors prefer companies that payout regular dividends as opposed to those that don't because it provides them with a steady stream of income. Others believe that reinvesting profits back into the business is more beneficial than receiving periodic payments in the form of dividends.Whether you're for or against paying out dividends, they remain an important part of corporate finance and provide shareholders with one way to receive returns on their investment.
