Dividend is the part of companies profit which is paid to shareholders of company. Dividend is the return which shareholder gets for investing in the company. The dividend amount will be decided by the Management of the company. The company announce dividend Quarterly or Annually according to their practice. Dividend will be calculated on the basis of face value of the share.
Types of Dividend
- Divident in form of Cash : company will pay dividend in the form of cash to its shareholders.
- Dividend in the form of Share : The company may give additional share on which the shareholder already holds.
- Dividend in the form of Property: The company will pay the dividend in the form of Property or assets to its shareholders.
- Liquidating dividend: If the company closes it’s operations then company will return the money invested by the shareholder.