Dividend
Distribution of profits to shareholders.
Formula
Dividend per Share = Total Dividends Paid ÷ Number of Shares
Real World
Apple paid shareholders $0.24 per share in dividends in Q1 2024, rewarding long-term investors while retaining billions for R&D and share buybacks.
Exam Focus
Distinguish dividends from retained profit — 'analyse' questions expect you to weigh both shareholder returns and reinvestment trade-offs.
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