Dividend Explained

Most of us are familiar with the world dividend, but do we really know what it means? from a survey I conducted on http://investingport.com I found out that most investors do not know exactly what type of benefits that is hidden in stock dividend . If you are one of the investors or potential investors that will like to know what dividend is you are at the right place.
Dividend is a payment made by a company or a cooperate firm to its shareholder; this happen when company make profits. Since stockholder are part of the cooperate owner, this companies will share the profit with stockholders, the profit could be presented to stockholder in two ways, either as a payout or retained for the sake of re-investing into the company. Now that we are informed of what dividend is, I guess that is another skill to investing other than just buying and selling for profits.