"A taxable payment extracted from a company.s current or retained earnings. It is declared by a company's board of directors and given to its shareholders. Dividends are usually given in cash form, but they may also take the form of stock options or other property. Dividends are greatest when investing in stable companies that are not experiencing much growth; thus they provide incentive to invest in companies that are not expanding rapidly. Companies are not required to pay dividends. A dividend is also called a payout.",,