Shareholders can earn a return via dividends or via selling their stock at a charge greater than the rate they paid.
Dividends symbolize the distribution of company profits to shareholders, based totally upon the range of shares held in the company.
Shareholders expect the organizations that they invest in to return profits to them, however now not all businesses pay dividends.
In the U.S., most dividends are cash dividends, which are cash payments made on a per-share foundation to investors. For instance, if a enterprise will pay a dividend of 20 cents per share, an investor with 100 shares would obtain $20 in cash. Stock dividends are a percentage extend in the quantity of shares owned.
Learn more about dividends here:
