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Definition of Dividend policy
An established guide for the firm to determine the amount of money it will pay as dividends.
This policy governs Canada Life's actions regarding distribution of dividends to policyholders. It's goal is to achieve a dividend distribution that is equitable and timely, and which gives full recognition of the need to ensure the ongoing solidity of the company. It also specifies that distribution to individual policyholders must be equitable between dividend classes and policyholder generations, and among policyholders within any class.
Analysis of a decision on dividend policy, in a perfect capital
The argument that dividend changes are important signals to investors
The view that shareholders prefer capital gains over dividends,
An argument that "within reason," investors prefer large dividends to
A group of shareholders who prefer that the firm follow a particular dividend policy. For
John Lintner's work (1956) suggested that dividend policy is related to a target level of
Theory that under ideal conditions, the value of the firm is unaffected by dividend policy.
A dividend paid in cash to a company's shareholders. The amount is normally based on
Procedures followed by a firm in attempting to collect accounts receivables.
A requirement that any missed preferred or preference stock dividends be paid
A formula to estimate the intrinsic value of a firm by figuring the
A dividend is a portion of a company's profit paid to common and preferred shareholders. A stock
With respect to a project financing, an arrangement under which the sponsors of a project
A model for valuing the common stock of a company, based on the
Dividend growth model
A model wherein dividends are assumed to be at a constant rate in perpetuity.
A bond covenant that restricts in some way the firm's ability to pay cash dividends.
Dividend payout ratio
Percentage of earnings paid out as dividends.
Dividends per share
Amount of cash paid to shareholders expressed as dollars per share.
The fixed or floating rate paid on preferred stock based on par value.
Dividend reinvestment plan (DRP)
Automatic reinvestment of shareholder dividends in more shares of a
A shareholders' rights to receive per-share dividends identical to those other shareholders receive.
Dividend yield (Funds)
Indicated yield represents return on a share of a mutual fund held over the past 12
Dividend yield (Stocks)
Indicated yield represents annual dividends divided by current stock price.
Dividends per share
dividends paid for the past 12 months divided by the number of common shares
Extra or special dividends
A dividend that is paid in addition to a firm's "regular" quarterly dividend.
This literally means "without dividend." The buyer of shares when they are quoted ex-dividend
The first day of trading when the seller, rather than the buyer, of a stock will be entitled to
The use of government spending and taxing for the specific purpose of stabilizing the economy.
Sale of some shares of stock to get cash that would be similar to receiving a cash dividend.
Total amount of dividends that would be paid on a share of stock over the next 12 months
Payment by a firm to its owners from capital rather than from earnings.
Actions taken by the Board of Governors of the Federal Reserve System to influence the
Policy asset allocation
A long-term asset allocation method, in which the investor seeks to assess an
Residual dividend approach
An approach that suggests that a firm pay dividends if and only if acceptable
Also referred to as an extra dividend. dividend that is unlikely to be repeated.
Payment of a corporate dividend in the form of stock rather than cash. The stock dividend
Variable life insurance policy
A whole life insurance policy that provides a death benefit dependent on the
Purchase of shares in which the buyer is entitled to the forthcoming dividend. Related: exdividend.
A payment a company makes to stockholders. Earnings before income tax. The profit a company made
The payment of after-tax profits to shareholders as their share of the profits of the business for an accounting period.
Income that a company receives in the form of dividends on stock in other companies that it holds.
Amounts paid to the owners of a company that represent a share of the income of the company.
dividend payout ratio
Computed by dividing cash dividends for the year
dividend yield ratio
Cash dividends paid by a business over the most
dividend growth method
a method of computing the cost
A payment made to shareholders that is proportional to the number of shares
Payment of cash by the firm to its shareholders.
Procedures to collect and monitor receivables.
constant-growth dividend discount model
Version of the dividend discount model in which dividends grow at a constant rate.
Standards set to determine the amount and nature of credit to extend to customers.
Periodic cash distribution from the firm to its shareholders.
dividend discount model
Computation of todayâ€™s stock price which states that share value equals the present value of all expected future dividends.
dividend payout ratio
Percentage of earnings paid out as dividends.
Date that determines whether a stockholder is entitled to a dividend payment; anyone holding stock before this date is entitled to a dividend.
information content of dividends
dividend increases send good news about cash flow and earnings. dividend cuts send bad news.
Distribution of additional shares to a firmâ€™s stockholders.
A monetary policy of matching wage and price increases with money supply increases so that the real money supply does not fall and push the economy into recession.
A policy designed to increase an economy's prosperity at the expense of another country's prosperity.
Decreasing inflation by immediately decreasing the money growth rate to a new, low rate. Contrast with gradualism.
Demand Management Policy
Fiscal or monetary policy designed to influence aggregate demand for goods and services.
A policy that is a conscious, considered response to each situation as it arises. Contrast with policy rule.
Profits paid out to shareholders by a corporation.
A change in government spending or taxing, designed to influence economic activity.
A policy designed to lower inflation without reducing aggregate demand. Wage/price controls are an example.
Actions taken by the central bank to change the supply of money and the interest rate and thereby affect economic activity.
Theory that anticipated policy has no effect on output.
A formula for determining policy. Contrast with discretionary policy.
Tax-Related Incomes Policy (TIP)
Tax incentives for labor and business to induce them to conform to wage/price guidelines.
Policy Acquisition Costs
Costs incurred by insurance companies in signing new policies, including expenditures on commissions and other selling expenses, promotion expenses, premium
Preferred Stock Stock that has a claim on assets and dividends of a corporation that are prior
to that of common stock. Preferred stock typically does not carry the right to vote.
A companyâ€™s stated goal for how soon a customer order will be
As the term dividend relates to a corporation's earnings, a dividend is an amount paid per share from a corporation's after tax profits. Depending on the type of share, it may or may not have the right to earn any dividends and corporations may reduce or even suspend dividend payments if they are not doing well. Some dividends are paid in the form of additional shares of the corporation. dividends paid by Canadian corporations qualify for the dividend tax credit and are taxed at lower rates than other income.
This is an administrative fee which is part of most life insurance policies. It ranges from about $40 to as much as $100 per year per policy. It is not a separate fee. It is incorporated in the regular monthly, quarterly, semi-annual or annual payment that you make for your policy. Knowing about this hidden fee is important because some insurance companies offer a policy fee discount on additional policies purchased under certain conditions. Sometimes they reduce the policy fee or waive it altogether on one or more additional policies purchased at the same time and billed to the same address. The rules are slightly different depending on the insurance company. There could be enormous savings if several people in the same family or business were intending to purchase coverage at the same time.
This is the person who owns a life insurance policy. This is usually the insured person, but it may also be a relative of the insured, a partnership or a corporation. There are instances in marriage breakup (or relationship breakup with dependent children) where appropriate life insurance on the support provider, owned and paid for by the ex-spouse receiving the support is an acceptable method of ensuring future security.
A course of action adopted by a financial institution to guide and usually determine present and future decisions in the light of given conditions.
Unlike dividends which are paid to company shareholders, participating insurance policy dividends are not based on the company's overall profits. Rather, they are determined by grouping policies by type and country of issue and looking at how each class contributes to the company's earnings and surplus.
Insurance Policy (Credit Insurance)
A policy under which the insurance company promises to pay a benefit of the person who is insured.
Joint Policy Life
One insurance policy that covers two lives, and generally provides for payment at the time of the first insured's death. It could also be structured to pay on second death basis for estate planning purposes.
A type of insurance policy or annuity in which the owner does not receive dividends.
A policy offers the potential of sharing in the success of an insurance company through the receipt of dividends.
A written document that serves as evidence of insurance coverage and contains pertinent information about the benefits, coverage and owner, as well as its associated directives and obligations.
Yearly event linked to a policy. Usually the date issued.
Date on which the insurance company assumes responsibilities for the obligations outlined in a policy.
Administrative charge included in a policy Premium.
Period between two policy anniversaries.
The person who owns and holds all rights under the policy, including the power to name and change beneficiaries, make a policy loan, assign the policy to a financial institution as collateral for a loan, withdraw funds or surrender the policy.
Target payout ratio
A firm's long-run dividend-to-earnings ratio. The firm's policy is to attempt to pay out a
Assuris is a not for profit organization that protects Canadian policyholders in the event that their life insurance company should become insolvent. Their role is to protect policyholders by minimizing loss of benefits and ensuring a quick transfer of their policies to a solvent company where their benefits will continue to be honoured. Assuris is funded by the life insurance industry and endorsed by government. If you are a Canadian citizen or resident, and you purchased a product from a member life insurance company in Canada, you are protected by Assuris.
A type of insurance policy or annuity in which the owner receives dividends, typically increases the death.
After premiums have been paid for a number of years, further annual premiums may be paid by the current dividends and the surrender of some of the paid-up additions which have built up in the policy. In effect, the policy can begin to pay for itself. Whether a policy becomes eligible for premium offset, the date on which it becomes eligible and whether it remains eligible once premium offset begins, will all depend on how the dividend scale changes over the years. Since dividends are not guaranteed, premium offset cannot be guaranteed either.
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