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Dividend |
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DividendThe amount paid each quarter by a corporation to its stockholders for each share of stock.DividendThe distribution of part of a company's earnings to shareholders, usually twice a year in the form of a main dividend and an interim dividend.Normally, the dividend is expressed on a 'per share' basis, for instance - 3p per share. This makes it easy to see how much of the company's profits are being paid out, and how much are being retained by the company to plough back into the business. So a company that has earnings per share in the year of 6p, and pays out 3p per share as a dividend, is passing half of its profits on to shareholders and retaining the other half.Directors of a company have discretion as to how much of a dividend to declare, and they don't have to pay a dividend at all. Indeed , for young growth companies making no profits dividends are not generally expected.When they are expected, however, the City hates to be disappointed! Fund managers rely on big companies producing consistent dividends year after year, and wobetide the company that surprises the City by announcing a reduced or nil dividend.As a private investor, it is worth checking the dividend history of the company you invest in to see if it has produced a reliable stream over the years. If income is important to you (as opposed to capital growth), the dividend yield is vital information to you.Note that dividends are nearly always paid in cash, but they can also be in the form of stock (scrip dividend).Similar MatchesCum 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. Equalizing dividendEqualizing dividendSpecial dividends received by investors of a firm for income the investor lost because the firm altered the dividends payment schedule. 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. Year end dividendYear end dividendAn additional dividend paid at the end of the trading year and based on company profits. Income dividendIncome dividendIn the US, a distribution of interest or dividends to the shareholders of a mutual fund. Further SuggestionsIndicated dividenddividend growth Liquidating dividend Special dividend accumulated dividend unpaid dividend Dividend clientele Insurance dividend Dividend clawback dividend yield Cumulative dividend feature Dividend Discount Return Dividends payable Tax differential view (of dividend policy) Ex stock dividends dividend cover Dividend in arrears Unpaid dividend Dividend Disbursing Agent Dividend Discount Model (DDM) extra dividend Cum dividend final dividend Perfect market view (of dividend policy) passed dividend |
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