Trading glossaryReviewed 16 July 2026
Definition
A dividend is a distribution of cash, shares, or other property that a company or fund makes to eligible holders under declared terms.
In market context
Dividends are not guaranteed; a board or fund can reduce, omit, or change them subject to governing rules. Eligibility usually depends on record and ex-dividend dates, while taxes, currency conversion, and account terms affect the amount ultimately received. A price often adjusts when an instrument begins trading without the declared distribution, so dividend income should be evaluated as part of total return rather than as free additional value.
Source
Use the primary source for fuller regulatory or market context.