The word “dividend” comes from the Latin word “dividendum” (“thing to be divided”). Dividend means bonus that declared by board of directors or Companies owner. Dividends are payments made by a corporation or board of directors not always paid in money means Cash known as Cash dividend, but can be paid in shares of stock, known as a stock dividend.
So dividend is: Cash dividend and stock dividend.
How Calculation dividend?
Dividend = $20! (($2000/$10)x$0.10)
Here: if Number of Shares 200
Cost Per Shares $10
Company issues a dividend of $0.10
What is cash Dividend?
A cash dividend is a cash payment made by the corporation or board of directors to the shareholders.
What is stock Dividend?
A stock dividend is the payment based on shares of stock is, a trader receives from the company or corporation he/she is currently own how many shares.