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Question

What is a Dividend?

Answer

A Dividend is a payment of a company's post tax profits distributed to its shareholders, usually expressed as pence (per share).

There are two main types of dividend: #

A cash dividend is a proportion of a company's profit paid out to shareholders, usually twice a year - as an interim and then a final dividend.

A scrip dividend is when a company gives the option to receive additional ordinary shares instead of the cash dividend.

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