What is Dividend?

Dividends explained simply 👇🏼

Dividends are profits a business chooses to pay out to its shareholders.

They don’t have to pay a dividend. Some businesses keep the profits to reinvest and grow. Others choose to share some of those profits with owners.

If it’s a private company, dividends are paid to the owners or directors.

If it’s a publicly listed company, you might only own a tiny percentage of the business, but you’re still entitled to dividends based on how many shares you hold.

Dividends are usually paid per share. So the more shares you own, the more you receive.

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