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What is a dividend?

Equities or stocks may carry a dividend. A dividend is a payment by the company to it's shareholders. Dividends are paid out of profits and are usually stated on a per share basis. Dividends are paid in various formats. UK dividends are usually paid twice a year in the format of an interim dividend and a final dividend. The final dividend is typically larger than the interim dividend. Some companies pay their dividends quarterly and these dividends are typically of a similar amount each quarter. From time to time, companies will pay a special dividend. These are not considered to be part of the regular dividend stream and are not taken account of in our Income generator and income optimizer products. Some companies also pay a single or annual dividend.