WHAT IS CASH DIVIDEND?

A dividend is a reward paid to the shareholders of a company for their investment in its equity. Companies can decide to distribute dividends out of corporate earnings to eligible shareholders, or they might decide to retain earnings so that they can invest back into the company’s future business activities.

The decisions to pay dividend payments and the amounts to be distributed, are taken by a company's Board of Directors. Dividend distribution can be in forms such as shares, cash or hybrid which is paid at a scheduled frequency.