A dividend is the portion of the profit that is distributed by a public limited company to its shareholders.
The amount to be distributed (or the payout ratio) is usually measured on the basis of the portion of the surplus that is not used for investments or debt repayment. Dividends are therefore seen as a sign of economic strength. In some cases, companies pay out dividends even though no operating profit has been realised.
Generally, dividends are only paid on whole shares.