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Dow dividend theory |
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Dow dividend theorySee: Dogs of the Dow.Dow dividend theory Similar MatchesEx 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 growthDividend growthThe amount by which a company's yearly dividends grow compared with the previous year. 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. Homemade dividendHomemade dividendSale of some shares of stock to get cash in an amount similar to that of a cash dividend. 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. Further SuggestionsDividend trade roll or playcum dividend stock dividend income dividend Dividend requirement Interim dividend Residual dividend approach Unpaid dividend Preferred dividend coverage dividend cover With dividend Selling dividends Liquidating dividend dividend Dividends payable Dividend payout ratio Income dividend Dividend capture Indicated dividend passed dividend Optional dividend dividend yield Dividend Order Ex dividend Outstanding Dividends |
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