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Dividend growth |
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Dividend growthThe amount by which a company's yearly dividends grow compared with the previous year.Similar MatchesDividends payableDividends payableThe declared dividend dollar amount that a company is obligated to pay. Income dividendIncome dividendIn the US, a distribution of interest or dividends to the shareholders of a mutual fund. Dividend reinvestment planDividend reinvestment planA plan which allows private investors to reinvest cash dividends from their investments cheaply and easily back into the market, and so obtain the benefits of compounding.The Plan is managed by an administrator appointed by the company. On the dividend date, shareholders who join the plan are still paid the cash dividend, but the administrator then uses the cash to buy shares in the company on behalf of the shareholder. Any cash left over is sent to the shareholder in the normal way. Dealing commission on such purchases is usually 1%. Note that the Plan Administrator does not have to make the plan available for any and every dividend that the company pays. If it is not made available, shareholders will receive the cash dividend. Preferred dividend coveragePreferred dividend coverageNet income after interest and taxes (before common stock dividends) divided by preferred stock dividends. DividendDividendThe distribution of part of a company's earnings to shareholders, usually twice a year in the form of a main dividend and an interim dividend.Normally, the dividend is expressed on a 'per share' basis, for instance - 3p per share. This makes it easy to see how much of the company's profits are being paid out, and how much are being retained by the company to plough back into the business. So a company that has earnings per share in the year of 6p, and pays out 3p per share as a dividend, is passing half of its profits on to shareholders and retaining the other half.Directors of a company have discretion as to how much of a dividend to declare, and they don't have to pay a dividend at all. Indeed , for young growth companies making no profits dividends are not generally expected.When they are expected, however, the City hates to be disappointed! Fund managers rely on big companies producing consistent dividends year after year, and wobetide the company that surprises the City by announcing a reduced or nil dividend.As a private investor, it is worth checking the dividend history of the company you invest in to see if it has produced a reliable stream over the years. If income is important to you (as opposed to capital growth), the dividend yield is vital information to you.Note that dividends are nearly always paid in cash, but they can also be in the form of stock (scrip dividend). Further SuggestionsStock dividendExpected dividend yield With dividend Dividend clawback Dividend rollover plan Dividend requirement Dow dividend theory Dividend Discount Model (DDM) passed dividend Selling dividends Dividend clientele Discounted dividend model (DDM) Dividend policy scrip dividend Indicated dividend interim dividend Dividends received deduction stock dividend cum dividend Dividend payout ratio Ex dividend Dividend trade roll or play Tax differential view (of dividend policy) Dividend in arrears Cum dividend |
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