Dividends

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A dividend is a payment made by a corporation to its shareholders of record typically as a distribution of their profits. When a corporation earns a profit AKA surplus, the corporation may re-invest the profit back in to the business and pay a proportion of the profit as a dividend to shareholders. Distribution to shareholders may be in cash (typically with a deposit into a bank account) or, if the corporation has a dividend reinvestment plan the dividend amount can be paid by the corporation issuing more shares or share reinvestment. When dividends are paid, shareholders are most likely required to pay income taxes, and the corporation does not receive a corporate income tax deduction for the dividend payments.

 

Some of the best dividend corporations are:

UNP Union Pacific

MSI Motorola Solutions Inc.

CLX The Clorox Co.

TGT Target Corp.

CVS CVS Health Corp.

INTC Intel Corp.