Lesson 1,
Topic 1
In Progress
5.6 Dividends
5.6 DIVIDENDS
Dividends refer to the portion of a company’s profits that is distributed to its shareholders. They represent a way for the company to share its financial success with its owners.
Types of dividends
- Cash dividends: These are dividends paid in the form of cash to shareholders, usually based on the number of shares they own.
- Stock dividends: Sometimes, companies may distribute additional shares to shareholders instead of cash. These are known as stock dividends or bonus shares.
- Property dividends: In certain cases, companies may distribute assets or property to shareholders as dividends.
