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Term

DIVIDEND
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This is the amount distributed by a company to its shareholders. It is usually (but not necessarily) paid out of the profit of the company.

Dividend may be expressed as a percentage (%) of the face value of a share, or it may be expressed as the absolute amount per share.

Example: Dividend may be expressed as 40%. If the face value of a share is Rs. 10, this dividend would amount to Rs. 4 per share. Or the dividend may be expressed straightaway as Rs. 4 per share.

Related Terms: Dividend Payout Ratio
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