Dividends are payments companies make to shareholders as a reward for owning stock..They usually come from company profits after expenses and reinvestments..The board of directors declares the dividend amount per share..Ex-dividend date decides who qualifies to receive the payout..On the record date, the company identifies eligible shareholders..On the payment date, dividends are distributed as cash or stock..Cash dividends provide income, while stock dividends give extra shares..Companies pay dividends to reward investors and signal stability..Dividends aren’t guaranteed—firms can cut or suspend them anytime..Read More Stories.Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp