Definition by the book

A dividend is the distribution of a portion of the company's earnings, decided and managed by the company’s board of directors, and paid to a class of its shareholders. Dividends can be issued as cash payments, shares of stock, or other property. A company’s net profits can be distributed to shareholders as dividends or kept within the company as retained earnings.

What it really means

Dividends are payments made by a company to owners of the company’s stock (investors/shareholders).They are a way for companies to distribute revenue back to investors, and one of the ways investors earn a return from investing in stock.

Learn more

• https://napkinfinance.com/napkin/dividend-definition/
• https://www.nerdwallet.com/blog/investing/what-are-dividends/
• https://www.investopedia.com/terms/d/dividend.asp