What is a cash dividend？

A cash dividend is a payment made by a company to its shareholders out of its profits or reserves. It is a distribution of a portion of the company's earnings to its shareholders in the form of cash. The amount of the dividend is usually expressed as a per-share amount and is paid to all shareholders who own the stock on the dividend record date. Cash dividends are a way for companies to reward their shareholders and provide them with a return on their investment.