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What is a dividend?

What is a dividend? Here are some definitions.

Noun
  1. (arithmetic) A number or expression that is to be divided by another.
  2. (finance) A pro rata payment of money by a company to its shareholders, usually made periodically (eg, quarterly or annually).
  3. (figuratively) Beneficial results from a metaphorical investment (of time, effort, etc.)
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Examples
Combine this with a decent dividend yield and you should be on to a winner.
Company X and Y both pay annual dividend of 40 tambala to their shareholders and this is expected to continue in perpetuity.
There are no profits and no dividend, and the assets are valued at just 60p per share.
Doubling their latest annual dividend suggests they're well on the road to recovery.
Possible options to ensure that the dividend is safe include the closure or sale of loss-makers, such as the London Independent.
So, using the dividend yields seen during the 1998 crisis, rough target prices can be produced.

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