|
An ordinary dividend is a payment made by a corporation to shareholders, using a portion of the corporation’s earnings.
Ordinary dividends are typically paid on a regular schedule, e.g. quarterly. The payment is a fixed amount per share, e.g. 30 cents per share. Ordinary dividends are taxed as income, not capital gains. Some companies like Google do not pay dividends. They instead reinvest earnings in R&D.
Related Links
NerdWallet’s article on dividends
Investopedia’s article on ordinary dividends
| 
