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Investments glossary

Cash Dividend


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— Boris Nikolayevich Yeltsin

A cash dividend is funds or money paid to stockholders generally as part of the corporation’s current earnings or accumulated profits. The board of directors must declare the issuing of all dividends and decide if the dividend payment should remain the same or change. Long-term investors who want to maximize their gains can reinvest their dividends. Most brokers offer a choice to reinvest or accept cash dividends.


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