Learn what dividends are, how they are paid to shareholders, and how they affect a company's earnings and tax. Find out the different types of dividends, their accounting entries, and some examples of dividend stocks. A dividend is a payment in cash or stock that public companies distribute to their shareholders. Income investors prefer to earn a steady stream of income from dividends without needing to sell ... A dividend is a distribution of earnings , often quarterly, to a company's shareholders in the form of cash or additional shares. Not all public companies pay dividends. A dividend is a portion of a company’s profits that is paid out to its shareholders. Learn about the different types of dividends, how they work, why companies pay them, and how they affect stock prices and valuation.