A dividend is a distribution of earnings , often quarterly, to a company's shareholders in the form of cash or additional shares. Not all public companies pay dividends. A dividend is a cash payment that a company sends to investors who own its stock. Dividends are usually paid each quarter and deposited into brokerage accounts. Dividends allow companies to share earnings with investors while presenting a more attractive investment option. Learn what dividends are, how they are paid to shareholders, and how they affect a company's earnings and tax. Find out the different types of dividends, their accounting entries, and some examples of dividend stocks.
