A payment in cash made by a company to shareholders from profits.
A cash dividend is a monetary distribution paid by a company to shareholders, typically quarterly or annually. Companies declare a dividend per share; shareholders multiply this by their share count to calculate total dividend received. Cash dividends represent a return of profit to owners. Unlike stock dividends (new shares) or property dividends (other assets), cash dividends provide immediate cash. Dividend-paying stocks are attractive to income-focused investors; growth-focused investors often prefer companies that reinvest profits instead of paying dividends.