What is Cash Dividend ?

When the Dividend is paid in cash to the share holders of the company then it is called cash dividend.

The amount of Cash dividend is transffered to the share holders' Bank Account directly within specific time.

Explanation: Suppose A & B co. is a public limited company, Board of Directors of whom have Proposed 20 % cash dividend for the share holders, and the share holders at the AGM has approved 20 % cash dividend. If so then it is called cash dividend.