What is a Dividend?

What is a Dividend?

Investors buy shares in a company for two principal reasons: generating investment returns as shares rise in price, and receiving dividends. Keith briefly explains what dividends are, what considerations companies have when it comes to issuing dividends and how dividends impact share price.
Overview

This is essentially when a company rewards its shareholders by paying out cash every year. It is generally paid out of a company’s annual profits or retained earnings.

Key learning objectives:

  • Define Dividend and Scrip Dividend

  • Discuss the potential reasons to not pay out dividends

  • Identify when investors are eligible for dividends, and when they may invest in equity

  • How to calculate Dividend Yield

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Summary
logo-animationlogo-animationlogo-animation

Related videos

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.