Dividends are payments made by a corporation to its shareholders, typically from its profits. These payments can take the form of cash or additional shares of stock and are usually distributed on a regular basis, such as quarterly or annually. The amount of the dividend is determined by the company’s board of directors and is often expressed as a fixed amount per share or as a percentage of the share’s price, known as the dividend yield. Dividends serve as a way for companies to share their earnings with investors, providing a return on their investment. Shareholders may choose to reinvest dividends to acquire more shares, contributing to compound growth over time. Dividends are common among established companies with stable profits, while growth companies may reinvest profits rather than pay dividends.
Henkel reported a significant increase in dividends, pledging €2.04 per preferred share, up from €1.85. In 2024, Henkel achieved adjusted EBIT of approximately €3.1 billion, rising from €2.56 billion the…