When associate degree investor invests his money in shares, it will be the source of the company UN agency issued the shares. That company provides some part of profit to all shareholders or investors UN agency invested their money in company’s shares. part of company’s profit that is given to investor is termed dividend. Except accumulative pref. shares, company won't give dividend to equity and pref. shareholders, if company has not earned  profit. Dividend is reward of sacrificing the money that is paid by shareholders in the style of shares. Shareholders have right to induce dividend however they will not fix the quantity of dividend as a result of there ar many factors that affects the speed of dividend. someday company could interested for sloughing back of profit, at that point shareholders cannot demand for dividend.  for instance, for every share of AT&T you own, you may get sent 0.15 each year. Most firms pay dividends quarterly (four times a year), that means at the end of every business quarter, the company can send a check for 1/4 of 0.15 for each share you own.