Q4: What are dividends?

A:

Another item that affects equity, and is part of the story of equity, is dividends. Dividends are payments of value made to equity investors. Dividends may be in cash, other assets, or by way of a company issuing shares to shareholders for no payment (that is, ‘bonus shares’ or a ‘share split’). The most common form of dividends is cash.

Also, see Martin’s videos Dividends