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Cum dividend |
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Cum dividendWith dividend; said of a stock whose buyer is eligible to receive a declared dividend. Stocks are usually "cum dividend" for trades made on or before the fifth trading day preceding the record date, when the register of eligible holders is closed for that dividend period. Antithesis of ex-dividend.Cum 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.Similar MatchesEx dividendEx dividendPurchase of shares without entitlement to current dividends. This entitlement remains with the seller of the shares. Stock dividendStock dividendPayment of a corporate dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company, or it may be shares in a subsidiary being spun off to shareholders. Stock dividends are often used to conserve cash needed to operate the business. Unlike a cash dividend, stock dividends are not taxed until sold. Indicated 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. Discounted dividend model (DDM)Discounted dividend model (DDM)A formula to estimate the intrinsic value of a firm by figuring the present value of all expected future dividends. 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. Further Suggestionsdividend yieldfinal dividend Income dividend Dividend payout ratio Dividend requirement Residual dividend approach Outstanding Dividends Unpaid dividend Ex dividend scrip dividend Special dividend Interim dividend dividend reinvestment plan income dividend Dividend Order Liquidating dividend dividend growth Tax differential view (of dividend policy) Year end dividend Dividend in arrears Preferred dividend coverage Cumulative dividend feature Traditional view (of dividend policy) dividend discount model Optional dividend |
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