The profits of the company are divided among the shareholders and paid to them as dividends. These dividends are the primary motivation for most shareholders in investing their money in publicly traded corporations.
This refers to the portion of a company's profits distributed to shareholders at the end of the financial year. It is to be noted that shareholders participate and share in the growth of the underlying business through dividends and also be paid quarterly.
Retained earnings refers to the cumulative net income (and loss) not distributed as dividends to its stockholders. It is the accumulated earnings and it can be defined as the total amount of net income and loss that is held by a corporation for its future use, after paying out dividends to its stockholders.
The profits of the company are divided among the shareholders and paid to them as dividends. These dividends are the primary motivation for most shareholders in investing their money in publicly traded corporations.
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