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Dividend Order |
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Dividend OrderA letter or form signed by the shareholder instructing a corporation to issue and forward dividend and/or interest payments to a specific person or entity other than the registered owner, such as a bank or broker.Dividend Order Similar MatchesDividend rollover planDividend rollover planAn investment strategy that entails the purchase and selling of a stock right before its ex-dividend date in order to collect the dividends paid out by the stock and capture a trade profit. Year end dividendYear end dividendAn additional dividend paid at the end of the trading year and based on company profits. Tax differential view (of dividend policy)Tax differential view (of dividend policy)The view that shareholders prefer capital gains over dividends, and hence low payout ratios, because capital gains are effectively taxed at lower rates than dividends. 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. 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 SuggestionsIndicated dividendDividend Discount Return dividend yield Perfect market view (of dividend policy) Dividend Disbursing Agent Dividends received deduction scrip dividend passed dividend ex dividend Income dividend Stock dividend Dow dividend theory Homemade dividend With dividend dividend reinvestment plan dividend discount model cum dividend Dividend requirement unpaid dividend Traditional view (of dividend policy) interim dividend Preferred dividend coverage Dividend clawback Outstanding Dividends accumulated dividend |
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