A distribution of a portion of a company's earnings to its shareholders.
A dividend is a distribution of profits or earnings that a company pays to its shareholders. It represents a portion of the company's earnings that is distributed back to the owners of the company's stock. Dividends are typically paid in cash, but they can also be paid in the form of additional shares of stock or other assets.
In simpler terms, a dividend is a way for a company to share its profits with its shareholders. It is a reward for investing in the company and owning its stock. Dividends can be a valuable source of income for small business owners who hold stocks in other companies.
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