What are dividends?
Could someone explain to me briefly what a dividend is, what it is and give me some examples? Thank you in advance and best regards. Maurice
Could someone explain to me briefly what a dividend is, what it is and give me some examples? Thank you in advance and best regards. Maurice
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A dividend is a distribution of part of the company's profit, determined and managed by the company's management board and paid to a group of its shareholders. Ordinary shareholders of companies paying dividends are usually entitled as long as they own the shares prior to the dividend payout date. Dividends may be paid in cash or in the form of additional shares.
Dividends must be approved by shareholders through voting rights. While cash dividends are the most common, they can also be paid in the form of shares or other property. In addition to companies, various mutual funds and ETFs (Exchange-Traded Funds) also pay dividends.
Larger, more established companies with more predictable profits are often the best payers of dividends. These companies tend to pay regular dividends as they seek to maximize shareholder welfare beyond normal growth. Companies in the following industries are observed to keep a regular record of dividend payments:
- Oil and gas
- Banks and financial institutions
- Healthcare and pharmaceutical companies
- Utilities
A dividend is a distribution of part of the company's profit, determined and managed by the company's management board and paid to a group of its shareholders. Ordinary shareholders of companies paying dividends are usually entitled as long as they own the shares prior to the dividend payout date. Dividends may be paid in cash or in the form of additional shares.
Dividends must be approved by shareholders through voting rights. While cash dividends are the most common, they can also be paid in the form of shares or other property. In addition to companies, various mutual funds and ETFs (Exchange-Traded Funds) also pay dividends.
Larger, more established companies with more predictable profits are often the best payers of dividends. These companies tend to pay regular dividends as they seek to maximize shareholder welfare beyond normal growth. Companies in the following industries are observed to keep a regular record of dividend payments:
- Oil and gas
- Banks and financial institutions
- Healthcare and pharmaceutical companies
- Utilities
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