What exactly are "dividends?"?

Question

Are they taxed too?

Answer 1

Dividends are payments made by a company to its shareholders. When a company earns a profit, some of it is reinvested in the business and called retained earnings, and some of it can be paid to its shareholders as a dividend. The frequency of these varies by country. In the United States dividends are usually declared quarterly by the board of directors. In some other countries dividends are paid biannually, as an interim dividend shortly after the company announces its interim results and a final dividend typically following its annual general meeting. In other countries, the board of directors will propose the payment of a dividend to shareholders at the annual meeting who will then vote on the proposal.

In the United States, decisions regarding the amount and frequency of dividends is solely at the discretion of the board of directors. Shareholders are explicitly forbidden from introducing shareholder resolutions involving specific amounts of dividends.

Where a company makes a loss during a year, it may opt to continue paying dividends from the retained earnings from previous years or to suspend the dividend. Where a company receives a one-off gain, e.g. from the sale of some assets, and has no plans to reinvest the proceeds, the money is often returned to shareholders in the form of a special dividend.

Answer 2

Dividends are the part of a company's profit that is paid out to its shareholders. The company's board of directors decides how large a dividend the company will pay, or if it will pay a divended at all.

Usually only large, mature companies pay dividends, while smaller ones re-invest their profits for growth.

Yes, they are taxed.

Answer 3

Dividends are payments made by companies to their stockholders in order to share a portion of the profits from a particular quarter or year. The amount that any particular stockholder receives is dependent upon how many shares of stock they own and how much the total amount being divided up among the stockholders amounts to.

Answer 4

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Answer 5

When a company makes a profit they can give it to stock holders if they wish. It is taxable as ordinary income even if reinvested in more stock.

Answer 6

This is money or interest you receive for allowing someone to borrow or invest your money. Yes they are taxable.