Cash Dividend
A direct payment of cash from a company's earnings to shareholders, typically distributed on a regular quarterly schedule.
What is Cash Dividend?
A cash dividend is a distribution of retained earnings to shareholders in the form of a direct cash payment, typically declared by the board of directors on a quarterly basis in the United States. The board sets a declaration date (when the dividend is announced), a record date (which shareholders qualify), and a payment date (when cash is distributed). Cash dividends provide immediate income to investors and are widely interpreted as a signal of financial health and earnings confidence. Companies with consistent, growing cash dividends—often called dividend growth stocks—attract income-focused investors seeking predictable returns alongside capital appreciation.
Example
Apple Inc. declared a quarterly cash dividend of $0.24 per share for Q4 FY2023, payable on November 16, 2023, to shareholders of record as of November 13, 2023. Apple has paid and grown its quarterly cash dividend every year since reinstating dividends in 2012. With approximately 15.5 billion diluted shares outstanding, the quarterly payout represented roughly $3.7 billion in total cash distributed to shareholders.
Source: Apple Inc. 10-K FY2023