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Final dividend |
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Final dividendThe end of year dividend. In the UK, companies normally pay dividends twice per year, an interim and a final dividend, the latter normally being the larger of the two.The final dividend is announced by the company directors at its annual general meeting. Shareholders have the option of voting to accept the dividend or to reduce it, but they cannot increase it.Similar MatchesIndicated dividendIndicated dividendTotal amount of dividends that would be paid on a share of stock over the next 12 months if each dividend were the same amount as the most recent dividend. Usually represented by the letter "e" in stock tables. Dividend captureDividend captureSee: Dividend rollover plan Cum dividendCum dividendWhen a share is said to be 'cum dividend', it means that it is offered for sale with an entitlement to the next dividend payment attached. This dividend will already have been declared (but not paid) by the company, so the market knows how much it is worth and the share price will reflect this.At some point shortly before payment of the dividend is actually due, the share will go 'ex dividend', meaning that it is being offered for sale without the dividend. If the current owner sells an 'ex div' share, he will keep the dividend payment. But again, the price of the share will reflect this - it will have dropped from its 'cum dividend' price. 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. Insurance dividendInsurance dividendMoney paid annually to policyholders participating in cash value life insurance policies. Further Suggestionsstock dividendExpected dividend yield Cumulative dividend feature dividend Participating dividend Dividend Discount Return Dividend trade roll or play Selling dividends With dividend income dividend dividend growth Dividends received deduction Discounted dividend model (DDM) Dividend clawback ex dividend Tax differential view (of dividend policy) Interim dividend dividend cover Accumulated dividend Optional dividend year end dividend Perfect market view (of dividend policy) Dividend requirement extra dividend Stock dividend |
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