Dividends are paid________________.

monthly
quarterly
semi-annually
yearly

The correct answer is: D. yearly.

Dividends are a distribution of a company’s earnings paid to its shareholders. They are typically paid out quarterly, but some companies may choose to pay them out semi-annually or yearly. The amount of the dividend is usually determined by the company’s board of directors and is based on the company’s earnings.

Here is a brief explanation of each option:

  • A. Monthly. Dividends are not typically paid monthly. This would be a very high frequency of dividend payments and would likely be unsustainable for most companies.
  • B. Quarterly. Quarterly dividend payments are the most common frequency. This allows companies to distribute their earnings evenly throughout the year and gives shareholders a regular income stream.
  • C. Semi-annually. Semi-annual dividend payments are less common than quarterly payments, but they are still used by some companies. This frequency allows companies to distribute their earnings less frequently than quarterly, but still give shareholders a regular income stream.
  • D. Yearly. Yearly dividend payments are the least common frequency. This is because it can be difficult for companies to predict their earnings far in advance, so they may not be able to commit to paying dividends on a yearly basis. Additionally, yearly dividend payments can be seen as less attractive to shareholders than more frequent payments.