<P> A dividend is a payment made by a corporation to its shareholders , usually as a distribution of profits . When a corporation earns a profit or surplus , the corporation is able to re-invest the profit in the business ( called retained earnings ) and pay a proportion of the profit as a dividend to shareholders . Distribution to shareholders may be in cash ( usually a deposit into a bank account ) or , if the corporation has a dividend reinvestment plan , the amount can be paid by the issue of further shares or share repurchase . </P>
<P> A dividend is a payment made by a corporation to its shareholders , usually as a distribution of profits . When a corporation earns a profit or surplus , the corporation is able to re-invest the profit in the business ( called retained earnings ) and pay a proportion of the profit as a dividend to shareholders . Distribution to shareholders may be in cash ( usually a deposit into a bank account ) or , if the corporation has a dividend reinvestment plan , the amount can be paid by the issue of further shares or share repurchase . </P>
a corporation gives out its profits as dividends paid to whom
a corporation gives out its profits as dividends paid to whom
shareholders
shareholders