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Financial Terms | |
Dividend reinvestment plan (DRP) |
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Definition of Dividend reinvestment plan (DRP)Dividend reinvestment plan (DRP)Automatic reinvestment of shareholder dividends in more shares of a
Related Terms:401k PlanA retirement plan set up by an employer, into which employees can 403b PlanA retirement plan similar to a 401k plan, except that it is designed Aggregate planningA budgeting process using summary-level information to Baker PlanA plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor Cafeteria PlanA flexible benefits plan authorized under the Internal Revenue cafeteria plan a “menu” of fringe benefit options that includecash or nontaxable benefits Canada Pension Plan (CPP)A plan that provides retirement and long term disability income benefits to residents of Canadian provinces (excluding Quebec). ![]() Cash dividendA dividend paid in cash to a company's shareholders. The amount is normally based on cash dividendPayment of cash by the firm to its shareholders. constant-growth dividend discount modelVersion of the dividend discount model in which dividends grow at a constant rate. Corporate financial planningFinancial planning conducted by a firm that encompasses preparation of both Cum dividendWith dividend. Cumulative dividend featureA requirement that any missed preferred or preference stock dividends be paid Defined benefit planA pension plan in which the sponsor agrees to make specified dollar payments to Defined Benefit PlanA pension plan that pays out a predetermined dollar Defined contribution planA pension plan in which the sponsor is responsible only for making specified ![]() Defined Contribution PlanA qualified retirement plan under which the employer Discounted dividend model (DDM)A formula to estimate the intrinsic value of a firm by figuring the DividendA dividend is a portion of a company's profit paid to common and preferred shareholders. A stock DividendA payment a company makes to stockholders. Earnings before income tax. The profit a company made DividendThe payment of after-tax profits to shareholders as their share of the profits of the business for an accounting period. DividendA payment made to shareholders that is proportional to the number of shares dividendPeriodic cash distribution from the firm to its shareholders. DividendAs 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. DividendUnlike 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. Dividend clawbackWith respect to a project financing, an arrangement under which the sponsors of a project Dividend clienteleA group of shareholders who prefer that the firm follow a particular dividend policy. For ![]() dividend discount modelComputation of today’s stock price which states that share value equals the present value of all expected future dividends. Dividend discount model (DDM)A model for valuing the common stock of a company, based on the dividend growth methoda method of computing the cost Dividend growth modelA model wherein dividends are assumed to be at a constant rate in perpetuity. Dividend incomeIncome that a company receives in the form of dividends on stock in other companies that it holds. Dividend limitationA bond covenant that restricts in some way the firm's ability to pay cash dividends. Dividend payout ratioPercentage of earnings paid out as dividends. dividend payout ratioComputed by dividing cash dividends for the year dividend payout ratioPercentage of earnings paid out as dividends. Dividend policyAn established guide for the firm to determine the amount of money it will pay as dividends. Dividend PolicyThis 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. Dividend rateThe fixed or floating rate paid on preferred stock based on par value. Dividend rightsA 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 ratioCash dividends paid by a business over the most Dividend yield (Stocks)Indicated yield represents annual dividends divided by current stock price. DividendsAmounts paid to the owners of a company that represent a share of the income of the company. DividendsProfits paid out to shareholders by a corporation. Dividends per shareAmount of cash paid to shareholders expressed as dollars per share. Dividends per sharedividends paid for the past 12 months divided by the number of common shares Educational Assistance PlanA plan that an employer creates on behalf of its Employee stock ownership plan (ESOP)A company contributes to a trust fund that buys stock on behalf of Employee Stock Ownership Plan (ESOP)a profit-sharing compensation program in which investments are made in Employee Stock Ownership Plan (ESOP)A fund containing company stock and owned by employees, paid for by ongoing contributions by the employer. enterprise resource planning (ERP) systema packaged software program that allows a company to Enterprise resource planning systemA computer system used to manage all company Estate PlanningAn insurance program designed to provide funds for insured's dependents upon death of the insured, and to also conserve, as much as possible, the personal assets that the insured wants to bequeath to heirs. Ex-dividendThis literally means "without dividend." The buyer of shares when they are quoted ex-dividend Ex-dividend dateThe first day of trading when the seller, rather than the buyer, of a stock will be entitled to ex-dividend dateDate that determines whether a stockholder is entitled to a dividend payment; anyone holding stock before this date is entitled to a dividend. Extra or special dividendsA dividend that is paid in addition to a firm's "regular" quarterly dividend. Financial planA financial blueprint for the financial future of a firm. Financial planningThe process of evaluating the investing and financing options available to a firm. It Floor planningArrangement used to finance inventory. A finance company buys the inventory, which is then Homemade dividendSale of some shares of stock to get cash that would be similar to receiving a cash dividend. Hourly Rate PlanA method for calculating wages for hourly employees that involves Indicated dividendTotal amount of dividends that would be paid on a share of stock over the next 12 months information content of dividendsdividend increases send good news about cash flow and earnings. dividend cuts send bad news. Insured plansDefined benefit pension plans that are guaranteed by life insurance products. Related: noninsured plans Insured Retirement PlanThis is a recently coined phrase describing the concept of using Universal Life Insurance to tax shelter earnings which can be used to generate tax-free income in retirement. The concept has been described by some as "the most effective tax-neutralization strategy that exists in Canada today." Interplant transferThe movement of inventory from one company location to Liquidating dividendPayment by a firm to its owners from capital rather than from earnings. Long-term financial planFinancial plan covering two or more years of future operations. Manufacturing resource planningAn integrated, computerized system for planning manufacturing resource planning (MRP II)a fully integrated materials requirement planning system that involves Manufacturing resource planning (MRP II)An expansion of the material requirements planning concept, with additional computer-based capabilities in the areas of Material requirements planningA computerized system used to calculate material Material requirements planning (MRP)A computer-driven production methodology Materials requirement planningComputer-based systems that plan backward from the production schedule materials requirements planning (MRP)a computerbased information system that simulates the ordering and MM dividend-irrelevance propositionTheory that under ideal conditions, the value of the firm is unaffected by dividend policy. Money purchase planA defined benefit contribution plan in which the participant contributes some part and Non-insured plansDefined benefit pension plans that are not guaranteed by life insurance products. Related: Nonqualified Retirement PlanA pension plan that does not follow ERISA and operational plana formulation of the details of implementing Overfunded pension planA pension plan that has a positive surplus (i.e., assets exceed liabilities). Pension planA fund that is established for the payment of retirement benefits. Pension planA formal agreement between an entity and its employees, whereby the Perfect market view (of dividend policy)Analysis of a decision on dividend policy, in a perfect capital Piece Rate PlanA wage calculation method based on the number of units of production Plan for reorganizationA plan for reorganizing a firm during the Chapter 11 bankruptcy process. Plan sponsorsThe entities that establish pension plans, including private business entities acting for their Planned amortization class CMO1) One class of CMO that carries the most stable cash flows and the Planned capital expenditure programCapital expenditure program as outlined in the corporate financial plan. Planned financing programProgram of short-term and long-term financing as outlined in the corporate planningthe process of creating the goals and objectives for Planning horizonThe length of time a model projects into the future. planning horizonTime horizon for a financial plan. Planning, programming and budgeting system (PPBS)A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres. Plant and EquipmentBuildings and machines that firms use to produce output. Preferred Stock Stock that has a claim on assets and dividends of a corporation that are priorto that of common stock. Preferred stock typically does not carry the right to vote. Profit Sharing PlanA retirement plan generally funded by a percentage of company Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |