(1) Part of a corporation's profits that are distributed to shareholders rather than kept by the corporation in retained earnings.
(2) The interest expense paid out by mutual financial institutions for deposits and by credit unions for shares. American Banker Glossary
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Amounts paid to shareholders, usually annually or semi-annually, representing a return on their investment in a company. preference shares receive a fixed dividend while for equity shares the level of dividend depends on the profitability of the company. Dividends are effectively declared and paid net of 20% income tax. Dresdner Kleinwort Wasserstein financial glossary
Financial and business terms. 2012.