Which is true about dividends?

Question

Quizplus · Accepted Answer

Dividends are earnings that a company distributes to its shareholders as a portion of its profits. Option B is incorrect as return of capital refers to the refund of some or all of the money invested in a security. Option C is also incorrect as retained earnings are the portion of profits that a company decides to keep after paying out dividends. Option D is not necessarily true, as some companies have a consistent dividend policy and therefore, their dividends do not change a lot each quarter.

Which Is True About Dividends