what is dividend?

A dividend is a payment made by a corporation to its shareholders out of its profits or reserves. Dividends are typically paid in cash, but they can also be paid in the form of additional shares of stock or other property. Companies may choose to pay dividends to shareholders for a variety of reasons, such as to distribute profits, to attract and retain investors, or to increase the value of the company's stock. Dividends are typically paid on a regular basis, such as quarterly or annually, and the amount of the dividend is usually determined by the company's board of directors.