dividend

     

Diviends are payments made by a corporation to its shareholder members. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. Many corporations retain a portion of their earnings and pay the remainder as a dividend.

Trivia about dividend

  • It's a share of a company's profits distributed to a class of its shareholders
  • (David Faber gives the clue from the set of The Faber Report.) Payment in the form of additional shares in a company is a stock this; unlike a cash one, it's usually not taxed until sold
  • A distribution of earnings to shareholders is called this; "Father" had a "little" one
  • In 2003 Microsoft paid one of these to stockholders for the first time
  • It's a bonus paid by a company to its stockholders, often on a quarterly basis

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