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Dividend growth |
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Dividend growthThe amount by which a company's yearly dividends grow compared with the previous year.Similar MatchesParticipating dividendParticipating dividendDividend received from ownership of participating preferred stock. Insurance dividendInsurance dividendMoney paid annually to policyholders participating in cash value life insurance policies. 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 Dividends payableDividends payableThe declared dividend dollar amount that a company is obligated to pay. Dividend trade roll or playDividend trade roll or playUsed for listed equity securities. Method of buying and selling stocks around their ex-dividend dates so as to collect the dividend (which is 80% tax-exempt) offset by a fully-taxable capital loss. Predicated on the 80% current exemption that some corporations receive on dividend income. Further Suggestionsunpaid dividendstock dividend Dividend policy Special dividend Liquidating dividend Dividend Discount Model (DDM) Ex dividend Dividend clawback Dividend rollover plan Dividend Disbursing Agent cum dividend Income dividend Dividend distribution Selling dividends dividend yield dividend reinvestment plan Dividend payout ratio Dividend clientele Accumulated dividend Ex stock dividends Traditional view (of dividend policy) final dividend scrip dividend Omitted dividend Dividends received deduction |
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