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Special dividend |
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Special dividendAlso referred to as an extra dividend. Dividend that is unlikely to be repeated.Special dividend Similar MatchesDividend yieldDividend yieldThe annual dividend income per share received from a company divided by its current share price. Put simply - how much income are you getting out of the company for the capital you've got locked up in it?Dividend yields are calculated on the net dividend.Example: a company declares a net dividend of 2.1p per share. Its share price is 150p. To get the dividend yield, divide the net dividend by the current share price:2.10 /150 = 1.4%The dividend yield is 1.4%. Note that the higher the share price, the lower the dividend yield. Using the above example, if the shares rose to 200p, the yield would fall to 1.05%2.10/200 = 1.05%The problem for investors is that if a company has a low dividend yield compared to other companies in its sector, it can mean two things. Either it means the company's share price is high because the market reckons it's got great growth prospects and doesn't care too much about income, or it means that the company's a busted flush and can't afford to pay decent dividends. Dividend payout ratioDividend payout ratioPercentage of earnings paid out as dividends. 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. Extra dividendExtra dividendA dividend paid additionally to the normal dividend when profits of a company are particularly high. 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 SuggestionsYear end dividendPreferred dividend coverage Dividend Discount Model (DDM) Perfect market view (of dividend policy) passed dividend Dividend trade roll or play Homemade dividend dividend discount model Residual dividend approach Omitted dividend Dividend Order dividend cover interim dividend Dividend dividend Dividend clientele Expected dividend yield year end dividend Traditional view (of dividend policy) Dividend rollover plan Dividend policy Indicated dividend Income dividend ex dividend scrip dividend |
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