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Definition of Dividend
A dividend is a portion of a company's profit paid to common and preferred shareholders. A stock
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.
A payment made to shareholders that is proportional to the number of shares
Periodic cash distribution from the firm to its shareholders.
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.
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.
A dividend paid in cash to a company's shareholders. The amount is normally based on
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
With respect to a project financing, an arrangement under which the sponsors of a project
A group of shareholders who prefer that the firm follow a particular dividend policy. For
A model for valuing the common stock of a company, based on the
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.
Percentage of earnings paid out as dividends.
Amount of cash paid to shareholders expressed as dollars per share.
An established guide for the firm to determine the amount of money it will pay as dividends.
The fixed or floating rate paid on preferred stock based on par value.
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
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.
Perfect market view (of dividend policy)
Analysis of a decision on dividend policy, in a perfect capital
Residual dividend approach
An approach that suggests that a firm pay dividends if and only if acceptable
Signaling view (on dividend policy)
The argument that dividend changes are important signals to investors
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
Tax differential view ( of dividend policy)
The view that shareholders prefer capital gains over dividends,
Traditional view (of dividend policy)
An argument that "within reason," investors prefer large dividends to
Purchase of shares in which the buyer is entitled to the forthcoming dividend. Related: exdividend.
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
Payment of cash by the firm to its shareholders.
constant-growth dividend discount model
Version of the dividend discount model in which dividends grow at a constant rate.
dividend discount model
Computation of today’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.
MM dividend-irrelevance proposition
Theory that under ideal conditions, the value of the firm is unaffected by dividend policy.
Distribution of additional shares to a firm’s stockholders.
Profits paid out to shareholders by a corporation.
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.
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.
A lack of equivalence between two things, such as the unequal tax treatment of interest expense
The tendency of stocks preferred by the dividend discount model to share certain equity
Auction rate preferred stock (ARPS)
Floating rate preferred stock, the dividend on which is adjusted every
A company that pays out all earnings per share to stockholders as dividends. Or, a company or
In investments, it represents earnings before depreciation , amortization and non-cash charges.
Cash flow coverage ratio
The number of times that financial obligations (for interest, principal payments,
Cash flow per common share
Cash flow from operations minus preferred stock dividends, divided by the
These are securities that represent equity ownership in a company. Common shares let an
Conflict between bondholders and stockholders
These two groups may have interests in a corporation that
Also called the Gordon-Shapiro model, an application of the dividend discount
The month in which futures contracts may be satisfied by making or accepting a delivery.
Cumulative preferred stock
Preferred stock whose dividends accrue, should the issuer not make timely
Date of payment
Date dividend checks are mailed.
Date of record
Date on which holders of record in a firm's stock ledger are designated as the recipients of
The date on which a firm's directors meet and announce the date and amount of the next
Discretionary cash flow
Cash flow that is available after the funding of all positive NPV capital investment
Payments from fund or corporate cash flow. May include dividends from earnings, capital
Agreement between two countries that taxes paid abroad can be offset against
Feasible target payout ratios
Payout ratios that are consistent with the availability of excess funds to make
Preferred stock paying dividends that vary with short-term interest rates.
Security analysis that seeks to detect misvalued securities by an analysis of the firm's
The date on which holders of record in a firm's stock ledger are designated as the
Imputation tax system
Arrangement by which investors who receive a dividend also receive a tax credit for
Common stock with a high dividend yield and few profitable investment opportunities.
The yield, based on the most recent quarterly rate times four. To determine the yield, divide
The rise in the stock price following the dividend signal.
John Lintner's work (1956) suggested that dividend policy is related to a target level of
Lynch & Co
Non-cumulative preferred stock
Preferred stock whose holders must forgo dividend payments when the
The date on which each shareholder of record will be sent a check for the declared dividend.
Generally, the proportion of earnings paid out to the common stockholders as cash dividends.
Preferred shares give investors a fixed dividend from the company's earnings. And more
A security that shows ownership in a corporation and gives the holder a claim, prior to the
The market has already incorporated information, such as a low dividend, into the price of a stock.
1) Date by which a shareholder must officially own shares in order to be entitled to a dividend.
Repurchase of stock
Device to pay cash to firm's shareholders that provides more preferable tax treatment
Provisions that place constraints on the operations of borrowers, such as restrictions on
Accounting earnings that are retained by the firm for reinvestment in its operations;
The percentage of present earnings held back or retained by a corporation, or one minus the
Options: All option contracts of the same class that also have the same unit of trade, expiration date,
Split-rate tax system
A tax system that taxes retained earnings at a higher rate than earnings that are
Target payout ratio
A firm's long-run dividend-to-earnings ratio. The firm's policy is to attempt to pay out a
A version of the dividend discount model which applies a different expected dividend
An indexing strategy that is linked to active management through the emphasis of a
Total dollar return
The dollar return on a nondollar investment, which includes the sum of any
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