Dividend is a portion of a company's profits distributed to shareholders as a reward for their investment, typically paid out quarterly or annually.

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Why is dividend important?

Dividends are important because they provide a tangible return on investment for shareholders, attracting investors and potentially influencing a company's stock price and market perception.

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An easy way to understand dividend is:

To think of it as a portion of a company's profits that is paid out to shareholders as a reward for their investment, like a bonus for owning a piece of the company.

Dividend Formula, & Calculation

Dividend Formula: Dividend = Net Income × Payout Ratio

Dividend Calculation Example: If a company has a net income of $1,000,000 and a payout ratio of 40%, the dividend would be $400,000.

While we have prioritized reinvestment in our business growth and service enhancement, dividends have occasionally been distributed to reward our shareholders. This strategy has helped maintain investor confidence and attract further investment, fueling our expansion and innovation in aesthetic services.