What is Dividend

  • Dividend’ represents the amount of profit distribution made to stockholders over the last year on a per share basis. Dividend is usually quoted in annual terms.
  • However, usually dividends are paid out quarterly to stockholders.
  • Now, the shareholder should multiply the dividend by the number of shares owned by him and the he will know how much dividend the company will paid out quarterly.
  • Also, on the other hand, to calculate the total dividend paid by a company to its investors, the number of outstanding shares is multiplied by the dividend per share.

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