Question

What is a dividend and why is it needed?

Answer 1

Dividend is the number/value which is being divided.

For example,

Lets say you have 6 apples and you want to give it to 3 people. How many would you give to each person so that it is distributed evenly?

You do the calculation as: 6 divided by 3

Here 6 is the Dividend. And 3 is the Divisor.

If there are no apples can you divide it and give to anyone?

Exactly. When there is no Dividend you can’t perform Division.

Answer 2

Dividend are the shares of company's profits that are paid out to shareholders. Many stocks,
bonds and mutual funds offer dividends to investors. Dividend provide a stable income
stream that help to improve investments returns.

Hope it's help you...

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