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Dividend in arrears |
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Dividend in arrearsAccumulated dividends on cumulative preferred stock that are deemed payable to the current holder.Dividend in arrears Similar MatchesDividend distributionDividend distributionSee: Dividend income Ex stock dividendsEx stock dividendsThe time period between the announcement of a stock dividend and its actual payment. The buyer of shares during this time period does is not entitled to the dividend. Dividend coverDividend coverThe 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. Dividend yieldDividend yieldThe 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. With dividendWith dividendPurchase of shares that entitle the buyer to the forthcoming dividend. Related: Ex-dividend. Further SuggestionsDividend Discount ReturnSelling dividends Year end dividend cum dividend Dividend payout ratio Dividend capture Dividend policy Discounted dividend model (DDM) Dividend clientele extra dividend unpaid dividend dividend Dividends received deduction interim dividend Interim dividend Cum dividend Unpaid dividend Outstanding Dividends Liquidating dividend Dividend trade roll or play Optional dividend Dividend Disbursing Agent dividend discount model Dividend requirement Expected dividend yield |
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