CEVAP:

A cash dividend is a cash distribution of earnings by a corporation to its shareholders. Although dividends may be paid in other assets or properties, cash dividends are the most common types of dividends. If a corporation wants to pay cash dividends, three conditions required are as follows:

1. Sufficient retained earnings

2. Adequate cash

3. Declared dividends by the board of directors. 

The legality of a cash dividend depends on the laws of the country in which the company is incorporated.