Glossary · from the DESK dictionary
Dividend
A distribution of company profits paid out to shareholders.
In plain words
Cash a company pays directly to its shareholders instead of keeping all its profit in the business.
In more detail
Dividends are usually paid quarterly or annually and declared by the board. Not all companies pay dividends — growth companies in particular often prefer to reinvest profits back into the business.
Example
A company pays $1 per share in dividends each quarter to all shareholders.
What it means for traders
A core building block of income-focused investing and total-return analysis.
Common pitfalls
Dividends can be cut or suspended at any time, especially during economic downturns.
Related terms
Appropriation of Profit · Balance Sheet Profit (Distributable Profit) · Share Buyback · Cash Dividend · Distribution · Dividend Aristocrat · Dividend Discount Model (DDM) · Dividend Irrelevance Theory · Dividend Reinvestment Plan (DRIP) · Dividend Swap · Dividend Yield · Dividend Stock · Ex-Dividend Date · Interim Dividend · Preferred Stock · Total Return Index
From the DESK dictionary. For information only, not investment advice.
This is one page of many.
- The DESK dictionary explains more than 9,400 market terms like this one, in English and German – searchable, sorted by topic and difficulty, with favourites.
- Plus the Macro Terminal with more than 900 indicators per country, company pages and a weekly report.
Also open to read: Glossary A–Z · Free calculators · Weekly report archive
DESK is a research tool and not investment advice. Page generated: 2026-10-12.