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Passed dividend |
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Passed 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.Similar MatchesFinal dividendFinal dividendThe end of year dividend. In the UK, companies normally pay dividends twice per year, an interim and a final dividend, the latter normally being the larger of the two.The final dividend is announced by the company directors at its annual general meeting. Shareholders have the option of voting to accept the dividend or to reduce it, but they cannot increase it. Dividend reinvestment planDividend reinvestment planA plan which allows private investors to reinvest cash dividends from their investments cheaply and easily back into the market, and so obtain the benefits of compounding.The Plan is managed by an administrator appointed by the company. On the dividend date, shareholders who join the plan are still paid the cash dividend, but the administrator then uses the cash to buy shares in the company on behalf of the shareholder. Any cash left over is sent to the shareholder in the normal way. Dealing commission on such purchases is usually 1%. Note that the Plan Administrator does not have to make the plan available for any and every dividend that the company pays. If it is not made available, shareholders will receive the cash dividend. Dividend Discount Model (DDM)Dividend Discount Model (DDM)A method to value the common stock of a company that is based on the present value of the expected future dividends. With dividendWith dividendPurchase of shares that entitle the buyer to the forthcoming dividend. Related: Ex-dividend. Cum dividendCum 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. Further SuggestionsDow dividend theoryTraditional view (of dividend policy) Liquidating dividend Dividends payable Homemade dividend Ex stock dividends Residual dividend approach Expected dividend yield dividend growth Cumulative dividend feature income dividend Dividend Ex dividend Dividend rollover plan Dividend clientele Dividend policy Unpaid dividend Dividend distribution Dividend Discount Return Perfect market view (of dividend policy) Insurance dividend Special dividend stock dividend interim dividend Year end dividend |
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