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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 MatchesScrip dividendScrip dividendThe issue of additional shares by a company to a shareholder in lieu of a dividend. The shares have an equivalent cash value to the dividend. No dealing charges or stamp duty is payable the issue of the new shares. Dividend Disbursing AgentDividend Disbursing AgentA commercial bank or financial institution that disburses dividend to the securityholders. Usually a Transfer Agent is also the Dividend Disbursing Agent. Dividend OrderDividend OrderA letter or form signed by the shareholder instructing a corporation to issue and forward dividend and/or interest payments to a specific person or entity other than the registered owner, such as a bank or broker. 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 Stock dividendStock dividendThe payment of a dividend to shareholders in the form of stock instead of cash. If a company declares a 5% stock dividend, a shareholder with 1,000 shares will receive an additional 50 shares. Known as a scrip dividend in the UK. Further SuggestionsDividend in arrearsInsurance dividend Interim dividend Indicated dividend Cum dividend With dividend accumulated dividend income dividend Residual dividend approach Dividend clientele final dividend Liquidating dividend Accumulated dividend Stock dividend Dividend dividend Dividend clawback Year end dividend dividend reinvestment plan Dividend policy cum dividend Equalizing dividend Unpaid dividend Cumulative dividend feature extra dividend |
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