Cum dividend

 

Home
Site Map
Add Term
Search
About Us
Contributors

Cum dividend

With dividend; said of a stock whose buyer is eligible to receive a declared dividend. Stocks are usually "cum dividend" for trades made on or before the fifth trading day preceding the record date, when the register of eligible holders is closed for that dividend period. Antithesis of ex-dividend.

Cum dividend

When a share is said to be 'cum dividend', it means that it is offered for sale with an entitlement to the next dividend payment attached. This dividend will already have been declared (but not paid) by the company, so the market knows how much it is worth and the share price will reflect this.At some point shortly before payment of the dividend is actually due, the share will go 'ex dividend', meaning that it is being offered for sale without the dividend. If the current owner sells an 'ex div' share, he will keep the dividend payment. But again, the price of the share will reflect this - it will have dropped from its 'cum dividend' price.



Similar Matches

Dividend yield

Dividend yield

The annual dividend income per share received from a company divided by its current share price. Put simply - how much income are you getting out of the company for the capital you've got locked up in it?Dividend yields are calculated on the net dividend.Example: a company declares a net dividend of 2.1p per share. Its share price is 150p. To get the dividend yield, divide the net dividend by the current share price:2.10 /150 = 1.4%The dividend yield is 1.4%. Note that the higher the share price, the lower the dividend yield. Using the above example, if the shares rose to 200p, the yield would fall to 1.05%2.10/200 = 1.05%The problem for investors is that if a company has a low dividend yield compared to other companies in its sector, it can mean two things. Either it means the company's share price is high because the market reckons it's got great growth prospects and doesn't care too much about income, or it means that the company's a busted flush and can't afford to pay decent dividends.


Insurance dividend

Insurance dividend

Money paid annually to policyholders participating in cash value life insurance policies.


Dividend capture

Dividend capture

See: Dividend rollover plan


Liquidating dividend

Liquidating dividend

Payment by a firm to its owners from capital rather than from earnings.


Extra dividend

Extra dividend

A dividend paid additionally to the normal dividend when profits of a company are particularly high.


Further Suggestions

Dividend Discount Model (DDM)
Dividend Discount Return
Stock dividend
Discounted dividend model (DDM)
Tax differential view (of dividend policy)
Special dividend
Indicated dividend
Dividend requirement
interim dividend
Dow dividend theory
unpaid dividend
Dividend
Dividend payout ratio
Income dividend
dividend reinvestment plan
Cumulative dividend feature
With dividend
Dividend in arrears
Accumulated dividend
Interim dividend
dividend cover
Optional dividend
Traditional view (of dividend policy)
Participating dividend
dividend growth


 
All rights Reserved. Do not copy without permission.