Profits that a company or mutual fund distributes to shareholders.
Mutual fund dividends are paid out of income from the scheme's investments and can be announced out of the realized gains only. While dividends in the hands of the investor are free from tax, mutual funds are now required to pay a "distribution tax" for dividends declared from debt-oriented schemes.
Earnings paid by a corporation to its stockholders. In preferred stock, dividends usually are fixed; with common shares, dividends vary with the fortunes of the company. Preferred stock is supposed to pay a regular and prescribed dividend amount. Common stock pays varying amounts when declared.