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On the a company's financial records, the declaration or payment of the a cash dividend have the cumulative impact of reducing total assets and stockholders' equity.
What is dividend?
A dividend is a payment made by a corporation to its shareholders that is decided by the board of directors. Dividend payments are frequently made quarterly and might take the form of cash payments or stock reinvestment.
Some characteristics of divined are-
- The transfer of company profits to qualified shareholders is known as a dividend.
- The directors of a firm decide on dividend payments and quantities.
- The dividend yield has been the dividend, calculated as a proportion of the share price of a corporation.
- Many businesses choose to keep their earnings in order to reinvest them back into the business rather than paying dividends.
- The dividend yield, which is the dividend, is expressed in terms of the share price of a corporation, for example, 2.5 percent.
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