"Dividend" is the portion of profits distributed to a company's shareholders as a reward for their investment. In exchange for providing risk capital (equity), shareholders receive both voting rights and the right to dividends.

Dividends are paid out of the company's remaining profits after deducting all liabilities. Part of this profit is usually not distributed, but added to the general reserve or used for new investments.

Dividends can be paid in various forms, such as a cash dividend (cash) or as shares (stock dividend). Companies with rapid growth will often pay little or no dividend because they need their resources for further growth. The dividend payout ratio (payout ratio) indicates the proportion of total profits that are distributed to shareholders.

There are also special forms of dividends, such as the superdividend (one-time high payout) and loyalty dividend (extra payout for loyal shareholders). The dividend yield is the dividend as a percentage of the stock price and is an important measure for investors looking for stable income.

The actual payment of dividends usually takes place in installments, with an interim dividend and a final dividend common in Europe. On the ex-dividend date, the dividend is paid, and the share price usually falls on that day by the amount of the dividend.

In short, dividends are an important form of reward for shareholders and can have a major effect on a stock's attractiveness to investors.