“Dividends” refer to income from shares or other corporate rights (other than debt claims) that participate in profits. In general terms, dividend income must be attributable to the ownership of shares or other units of equity ownership carrying a right to participate in profits.
Payments by a corporation to its shareholders authorized by the directors of the corporation. Dividend entitlements may be provided for in the corporation’s articles, but whether dividends are paid is always a matter in the discretion of the directors. Dividend entitlements may have various features.