14th October 2021
Listed companies declare dividends at regular intervals, for example, quarterly or six-monthly. Investors receive a share of the dividend, which is expressed as a monetary amount per share. The dividends can either be paid out to the investor, generating an income, or they can be reinvested to buy more shares.
Funds which invest in company shares also pay dividends, which are comprised of the income produced by the underlying companies. Again, this can either be paid out or reinvested.