A dividend is a distribution of a portion of a company's earnings. Dividends can be issued as cash payments, or as a new issue of stock.
As a shareholder of a company paying a dividend, your entitlement will be paid directly into your account. For fractional shares, you will be paid in proportion with your holding.
If you own 11.89 shares of a company that pays a $10 dividend, your account will be credited with $118.90c once the dividend is paid.