A quarterly dividend is a payment made by a company to its shareholders out of the profits earned in a specific period, usually every three months or once per quarter. This means that shareholders receive a portion of the company's earnings on a regular basis, which can provide them with a steady income stream and an incentive to continue holding onto their shares. Quarterly dividends are typically declared by a company's board of directors and are paid out to shareholders through a process called "dividend reinvestment," where the payment is reinvested back into the company in order to purchase more stock or receive additional dividend payments, thereby increasing their overall stake in the company.