Definition
Traditional formula for distributing profits derived from the regular businesss activity of a company, distributed among its partners or shareholders and generally on a regular basis over time.
Further information
Undistributed generated profits can be reinvested in the company itself.
If the receiving party of dividends is a corporation, they would be considered financially as income, thus forming part of the calculation of its Net Ordinary Result (NOR).
Dividends allow a possible method of evaluating an investment, based on the flow of expected income according to the company´s frequent dividend payment policy.
Related concepts
Update date: May 2025
