Dividends

need not be declared solely from the profit of the current year and can include

profits from previous trading profits, included in retained income;

Dividends

may be payable from capital when there is not enough reserves available to pay

dividends from as declared at the annual general meeting;

Dividends

need not necessarily be paid out in cash; they can be in the form of

capitalisation shares;

Dividends are a portion of

a company divided amongst the shareholders;