Glossary entry
A dividend is a distribution made by a company to eligible shareholders, commonly in cash but sometimes in additional shares or other assets. The board determines distributions subject to applicable rules and financial circumstances. Declaration, ex-dividend, record, and payment dates serve different purposes, and a dividend is only one part of an investor's total return.
Illustrative example
An eligible holder of 100 shares receives 50 when a cash dividend is 0.50 per share, before any withholding tax or applicable charges.
What to consider
Dividends can be reduced or omitted. A high quoted yield may reflect a falling share price rather than a dependable income stream.
General information, not a personal recommendation. Product availability, rights, and obligations are determined by the relevant provider, jurisdiction, and approved agreements.