Dividend

A dividend is a portion of a company's profit that is given to its shareholders, who are the people who own the company. When a company earns money, it has two choices - keep the money for itself or give some of it out in the form of dividends. Companies typically give out dividends as a way to thank their shareholders for investing in the company. When a dividend is paid out, the money is split among all the shareholders depending on how many shares, or parts, of the company they own.