Dividend Discount Return


 

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Dividend Discount Return

The rate of return which equates the present value of future expected dividends with the current market price of a security.



Dividend Discount Return

Similar Matches

Dividend growth

Dividend growth

The amount by which a company's yearly dividends grow compared with the previous year.


Dividend trade roll or play

Dividend trade roll or play

Used for listed equity securities. Method of buying and selling stocks around their ex-dividend dates so as to collect the dividend (which is 80% tax-exempt) offset by a fully-taxable capital loss. Predicated on the 80% current exemption that some corporations receive on dividend income.


Dividend capture

Dividend capture

See: Dividend rollover plan


Dividend cover

Dividend cover

The ratio between a company's earnings (net profit after tax) and the net dividend paid to shareholders, calculated as earnings per share divided by the dividend per share.So if a company has earnings per share of 8p and it pays out a dividend of 2.1p, the dividend cover is 8 / 2.1 = 3.80Generally speaking, a ratio of 2 or higher is considered safe (in the sense that the company can well afford the dividend), but anything below 1.5 is risky. If the ratio is under 1, the company is using its retained earnings from a previous year to pay this year's dividend.


Unpaid dividend

Unpaid dividend

A dividend declared by the directors of a corporation that has not yet been paid.


Further Suggestions

Interim dividend
Equalizing dividend
Selling dividends
interim dividend
Special dividend
accumulated dividend
Optional dividend
Residual dividend approach
dividend yield
Dividend Discount Model (DDM)
scrip dividend
Year end dividend
Dividend in arrears
Dividend clientele
ex dividend
Stock dividend
Dividends received deduction
Dividend policy
Dividend Order
extra dividend
year end dividend
dividend discount model
income dividend
Liquidating dividend
Dividend distribution


 
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