Dividend

A dividend is a distribution of cash, shares, or other property that a company or fund makes to eligible holders under declared terms.

Dividends are not guaranteed; a board or fund can reduce, omit, or change them subject to governing rules. Eligibility usually depends on record and ex-dividend dates, while taxes, currency conversion, and account terms affect the amount ultimately received. A price often adjusts when an instrument begins trading without the declared distribution, so dividend income should be evaluated as part of total return rather than as free additional value.