Dividend is a payment that receives the owner of some types of stocks from the issuer of these stocks. Actually, it is a share of the after-tax profit of the company, distributed proportionally to the number of shares between share owners.

Dividend is a payment that receives the holder of some types of stocks from the issuer of these stocks. Actually, it is a share of the after-tax profit of the company, distributed proportionally to the number of shares between shareholders.

Some companies (typically smaller) pay dividends at the end of an accounting year, other companies (usually larger, publicly held companies) pay dividends every quarter. The amount and timing of the dividends is decided by the board of directors.

Holders of preferred stocks receive dividend at a fixed rate and are paid first.

Holders of common stocks are entitled to receive any amount of dividend, based on the level of profit, and the company's need for cash for expansion or other purposes.

Normally all dividend payments are taxable.