« Back to Glossary Index
The part of a company’s earnings that is distributed to shareholders. It can be in the form of cash or shares. A company is under no obligation to pay a dividend, and its board may decide to omit a payout if it feels cash flow is insufficient or should be used for other purposes, such as to reduce debt. In some countries, dividends are paid quarterly; in others they are paid once or twice a year.
- Conversion Rate