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Ex dividend |
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Ex dividendThis literally means "without dividend." The buyer of shares when they are quoted ex-dividend is not entitled to receive a declared dividend. It is the interval between the record date and the payment date during which the stock trades without its dividend-the buyer of a stock selling ex-dividend does not receive the recently declared dividend. Antithesis of cum dividend (with dividend).Ex dividendPurchase of shares without entitlement to current dividends. This entitlement remains with the seller of the shares.Similar MatchesInterim dividendInterim dividendThe declaration and payment of a dividend prior to annual earnings determination. Dividend clawbackDividend clawbackAn arrangement under which sponsors of a project agree to contribute as equity any prior dividends received from the project to the extent necessary to cover any cash deficiencies. Special dividendSpecial dividendAlso referred to as an extra dividend. Dividend that is unlikely to be repeated. Dividend discount modelDividend discount modelA way of valuing a share based on the net present value of the dividends that you expect to receive in the future.The simplest version of the model assumes that the company's dividend rate remains constant. The 'fair' price of the share is the dividend (in pennies per share) divided by the required rate of return. So if you want 10% a year from your shares, the value of a company paying a 7p dividend is 70p. If you think a return of 8% is satisfactory, the value of the same share is 87.5p.A more complex model assumes that the dividends of the company grow at a consistent rate. The fair price to pay is the next dividend divided by the required rate of return minus the rate at which dividends are expected to grow. So if the 7p dividend is expected to grow at 5% per year, an investor requiring an 12% return would value the shares at (7p x 1.05) divided by (0.12 - 0.05)= (7.35p) divided by (0.07)= 105p Dividend in arrearsDividend in arrearsAccumulated dividends on cumulative preferred stock that are deemed payable to the current holder. Further SuggestionsDividendExpected dividend yield Liquidating dividend Perfect market view (of dividend policy) Ex stock dividends Dividends payable Discounted dividend model (DDM) Year end dividend Selling dividends dividend yield extra dividend dividend reinvestment plan Dividend capture accumulated dividend Dividend trade roll or play unpaid dividend dividend dividend growth Dividend payout ratio year end dividend Income dividend Omitted dividend Dividend requirement scrip dividend Dividend clientele |
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