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Dividend |
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DividendThe amount paid each quarter by a corporation to its stockholders for each share of stock.DividendThe 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).Similar MatchesInterim dividendInterim dividendThe declaration and payment of a dividend prior to annual earnings determination. Dividend 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. Extra dividendExtra dividendA dividend paid additionally to the normal dividend when profits of a company are particularly high. Dividend requirementDividend requirementThe annual earnings minimum required for payment of dividends on a preferred stock. Unpaid dividendUnpaid dividendA dividend which has been declared by a corporation but has not yet been paid. Further SuggestionsDividend trade roll or playDividends payable ex dividend passed dividend With dividend dividend reinvestment plan Preferred dividend coverage Dividend Discount Return Dividend capture Expected dividend yield Ex stock dividends interim dividend Indicated dividend Dividend in arrears Dividend clawback Cumulative dividend feature Cum dividend dividend yield Optional dividend dividend discount model Unpaid dividend Omitted dividend Residual dividend approach scrip dividend Year end dividend |
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