dividend investment & finance definition

A distribution, typically quarterly, of a corporation’s earnings to its shareholders. Dividends can be paid in cash or stock. Sometimes, if a company has had a particularly good year, a special year-end dividend may be paid. If a company failed to make a profit, likely no dividend is paid. Some companies, such as growth companies, don’t issue dividends even when the company makes a profit. Their belief is that they can create a higher return for shareholders, through stock appreciation, by keeping the money and using it to expand the business. Often technology companies have this strategy.