A.1. (i) What is a dividend?

Modified on Thu, 23 Aug 2018 at 02:01 PM

A dividend is a taxable sum of money declared by a company’s board of directors and given to its shareholders out of the company’s current or retained earnings. Dividends are usually given as cash (cash dividend), but they can also take the form of stock (scrip dividend) or other property. There is no guarantee that a company will make dividend payments in any given year or years.


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