Dividends represent the distribution of corporate profits to shareholders, based upon the number of shares held in the company. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Shareholders expect the companies that they invest in to return profits to them, but not all companies pay dividends. Some companies keep profits as retained earnings that are earmarked for re-investment in the company and its growth, giving investors capital gains. The shareholders get dividend payments in their registered bank account.

Answer given by Shubhamm Sir at 14-Jan-2023 04:43 PM