A payment to stockholders who own a specific stock. Some companies distribute part of their earnings directly to shareholders in the form of money or additional stock. This payment is referred to a dividend. Not all companies pay out dividends. They’re a reward usually taken from the net profits and approved by a board to reward stock owners for their investment.
We don't know everything about the markets. We're just devoted to learners. Taken from those smarter than ourselves, here's how we define Dividend.