Definition
A dividend is a cash payment from a company to its shareholders. When a company makes money it can choose to keep it for reinvestment — or distribute part of it to shareholders as a dividend.
Example: Telenor typically pays 9-10 NOK per share in dividends. If you own 500 Telenor shares you receive 4,500-5,000 NOK directly into your account.
"Dividends are the reward for patience — money that comes to you while you sleep."— Florence Scovel Shinn