Lesson 1, Topic 1
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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

  1. Cash dividends: These are dividends paid in the form of cash to shareholders, usually based on the number of shares they own.
  2. Stock dividends: Sometimes, companies may distribute additional shares to shareholders instead of cash. These are known as stock dividends or bonus shares.
  3. Property dividends: In certain cases, companies may distribute assets or property to shareholders as dividends.
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