What Is a Dividend?
A dividend is a payment a company makes to its shareholders, usually in cash, from its profits. Dividends are declared by the company's board and are often paid quarterly. They are not guaranteed and can be increased, reduced, or stopped.
Key Dates
To receive a dividend, shares must be owned before the ex-dividend date. The record date and payment date follow.
Dividend vs. Dividend Yield
The dividend is the amount paid per share; the dividend yield expresses it as a percentage of the share price.
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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.