Zoho Bookings & SalesIQ Alignment

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Dividend

Meaning:

A dividend is a part of a company’s profit that is shared with its shareholders. When a company makes money, it can choose to give some of that money to the people who own its shares.

Example:

If a company earns ₹1,000 and decides to give ₹100 as a dividend, each shareholder gets a portion of that ₹100 based on how many shares they own.

How to understand Dividend

Dividends provide income to shareholders in addition to any money they might make if the  stock price goes up.
They show that a company is doing well and can share its profits with owners


Importance of Dividend

They help investors earn money without selling their shares.
Receiving dividends can help people save for things like retirement.

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