Dividend

A dividend means "that which is to be divided", most commonly referring to the profit earned from stock holdings; usually, it represents the quotient received by the owner, in proportion to the fraction of ownership, at the decision of the board of directors. These may be paid in cash or stock. Many high growth companies do not pay dividends; rather, they invest their profits back into the company. These are known as retained earnings.

## Sources[edit]

http://usinfo.state.gov/products/pubs/oecon/chap12.htm