A dividend is a distribution of part of the earnings of a company to its shareholders. The dividend is normally expressed as an amount per share on the par value of the share. Thus a 15% dividend on a œ1 share will pay 15p. However, investors are usually more interested in the dividend yield, i.e. the dividend expressed as a percentage of the share value; thus if the market value of these œ1 shares is now œ5, the dividend yield would be 1/5 × 15% = 3%. The size of the dividend payment is determined by the board of directors of a company, who must decide how much to pay out to shareholders and how much to retain in the business; these amounts may vary from year to year. In the UK it is usual for companies to pay a dividend every six months, the largest portion (the final dividend) being announced at the company's AGM together with the annual financial results. A smaller interim dividend usually accompanies the interim statement of the company's affairs, six months before the AGM. In the USA dividends are usually paid quarterly. Research Dividend
Abbreviations
Money
Research Dividend