In finance, a dividend unit is the right to receive payments equal to actual
dividend
A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-inv ...
s paid on a
share or a
stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...
.
A dividend unit can be granted for a term, for example 20 years from the date of grant.
In the United States, dividend units are sometimes offered to employees as part of their retirement plan.
References
Units
{{investment-stub