A dividend is a share of the profit of a limited liability company. Paying dividends is a way to pay the profit generated by the company to its shareholders. For example, in companies listed on the stock exchange, dividends are usually paid once per year.
You must pay tax on the income you receive as dividends. Dividend income is taxed in a slightly different way depending on whether the company is listed or unlisted. The taxation of dividends from abroad also has its own special characteristics.