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What is a Dividend?

10/9/2018

A dividend is money paid on a schedule basis by the company to its shareholder out of its earning made.

How to get a dividend is to have shares of stock of the company.

The process of how dividends get distribute start with the Board of Director deciding to issue dividends to its stockholder.

First Board of Director declare a date that they intend to issue the dividend.
After they record the amount of current shareholders will get a dividend.
Finally they have a payment date to issue dividends.

A reason why a company might issue a dividend is because they have excess cash that does not need to be reinvested into the company for operation expansion or to start a new project

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