A periodic distribution of a portion of a company's earnings to its shareholders. Firms that pay dividends are typically mature companies that are no longer growing at a rate that provides incentives to investors in the form of significant increases in the price of their stock. Instead, they try to make the stock more attractive to investors through the payment of dividends. See growth stock, income stock, Record Date; ex-dividend.

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Popular Accounting Terms

imprest account
Penny Stock Reform Act of 1990
nil paid shares
baby bonds
fair value
American Depositary Receipt
Bank Insurance Fund (BIF)
Marshall Plan
productivity bonus