What Are Dividends and How Do They Work?
What are Dividends?
When companies make money, they give away part of these earnings to their shareholders. These declared earnings are called dividends. They come in the form of money (cash), stocks and a less likely form of assets.
What is a Dividend?
Have you ever heard someone justify an action because it will “pay dividends”? What they really mean is that their action will cause good results for them in the future. In the financial world, dividends are a bit different.