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Income dividend |
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Income dividendIn the US, a distribution of interest or dividends to the shareholders of a mutual fund.Income dividendAny payout to mutual fund shareholders resulting from interest, dividends, or other income.Income dividend Similar MatchesDividend 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 Year end dividendYear end dividendAn additional dividend paid at the end of the trading year and based on company profits. Passed dividendPassed dividendThe failure of a company to pay a scheduled dividend, usually because of reduced profits. When a company passes a dividend, institutional investors are usually very unforgiving, and the company can expect to see its share price marked down sharply. 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. Dividend payout ratioDividend payout ratioPercentage of earnings paid out as dividends. Further SuggestionsEqualizing dividendDividend distribution Dividend policy Unpaid dividend Dividend Discounted dividend model (DDM) Interim dividend Selling dividends Dividend Discount Model (DDM) extra dividend Dividend Order interim dividend unpaid dividend Participating dividend dividend reinvestment plan Dividend requirement dividend cover Dividend clawback Outstanding Dividends Stock dividend Accumulated dividend dividend scrip dividend Indicated dividend Traditional view (of dividend policy) |
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