(Video: Kalkine Media) *A company pays out a dividend from earnings as a return to shareholders. It is at the company's discretion whether dividends will be paid annually, monthly, or quarterly.
*It depends on the dividend policy. A company has various ways of paying out dividends. *Dividends can be paid as a cash dividend, stock dividend, property dividend, scrip dividend, or liquidating dividends.
*It is by far the most popular form of dividend payout. The money shelled out is deposited in the bank accounts of shareholders. The shareholders are paid in cash as per their shareholding on a per-share basis.
*It is another form of non-monetary dividend paid to shareholders. Property dividends are recorded at the current market price of the asset issued as dividends.