Dividends are earnings of a corporation distributed to its shareholders.To be called a shareholder means you form part of the ownership of the organisation.you might fall in the minority or majority class of shareholder depending on the value of shares you have with the Corporation.
Dividend is the stake of your shareholding in an organisation after the organisation declares its profit for any financial year. Basically,dividend can be said to mean a distribution of a firm's profit or surplus.
An organisation might decide not to pay dividend to its shareholders in a particular year depending on its trading activities for that particular year.
Dividend paid to shareholders of a company is based on the value of shares such shareholder has with the firm i.e Shareholders receive dividend in proportion to their shareholding. If a company declares N0.85k as DPS(dividend per share) and the number of shares you own in the firm is 20,000,your dividend for that year amounts to N17,000.
If a firm declares a high DPS,it means they are doing quite well financially in terms of profitability but if the case is otherwise,it means a decrease in profitability amongst other factors.
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