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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
Payment of cash by the firm to its shareholders.
Version of the dividend discount model in which dividends grow at a constant rate.
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
Computation of today’s stock price which states that share value equals the present value of all expected future dividends.
A model for valuing the common stock of a company, based on the
a method of computing the cost
A model wherein dividends are assumed to be at a constant rate in perpetuity.
Income that a company receives in the form of dividends on stock in other companies that it holds.
A bond covenant that restricts in some way the firm's ability to pay cash dividends.
Percentage of earnings paid out as dividends.
dividend payout ratio
Computed by dividing cash dividends for the year
dividend payout ratio
Percentage of earnings paid out as dividends.
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.
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 ratio
Cash dividends paid by a business over the most
Dividend yield (Stocks)
Indicated yield represents annual dividends divided by current stock price.
Amounts paid to the owners of a company that represent a share of the income of the company.
Profits paid out to shareholders by a corporation.
Dividends per share
Amount of cash paid to shareholders expressed as dollars per share.
Dividends per share
dividends paid for the past 12 months divided by the number of common shares
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
Date 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 dividends
A dividend that is paid in addition to a firm's "regular" quarterly dividend.
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
information content of dividends
dividend increases send good news about cash flow and earnings. dividend cuts send bad news.
Payment by a firm to its owners from capital rather than from earnings.
MM dividend-irrelevance proposition
Theory that under ideal conditions, the value of the firm is unaffected by dividend policy.
Perfect market view (of dividend policy)
Analysis of a decision on dividend policy, in a perfect capital
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.
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
Distribution of additional shares to a firm’s stockholders.
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.
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 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
Legislation under which interest, dividends, or capital gains earned on assets you transfer to your spouse will be treated as your own for tax purposes. Interest or dividends relating to property transferred to children under 18 also will be attributed back to you. The exception to this rule is that capital gains relating to property transferred to children under 18 will not be attributed back to you.
Auction rate preferred stock (ARPS)
Floating rate preferred stock, the dividend on which is adjusted every
Ownership shares issued by a business corporation. A business
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.
In investments, NET INCOME plus DEPRECIATION and other noncash charges. In this sense, it is synonymous with CASH EARNINGS. Investors focus on cash flow from operations because of their concern with a firm's ability to pay dividends.
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
CASH FLOWS FROM FINANCING ACTIVITIES
A section on the cash-flow statement that shows how much cash a company raised by selling stocks or bonds this year and how much was paid out for cash dividends and other finance-related obligations.
The entries that transfer the balances in the revenue, expense, and dividend accounts to Retained earnings and zero out the revenue, expense, and dividend accounts for the next period.
Are equity instruments that take no security against assets, have no fixed terms of repayment and pay no fixed dividends.
These are securities that represent equity ownership in a company. Common shares let an
That part of the capital stock of a corporation that carries voting rights and represents
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.
This is the principle which specifies the factors that must be taken into account when calculating dividends. At Canada Life, the key factors are: interest earnings, mortality, and operating expense.
Cumulative preferred stock
Preferred stock whose dividends accrue, should the issuer not make timely
That part of the balance of payments accounts that records demands for and supplies of a currency arising from activities that affect current income, namely imports, exports, investment income payments such as interest and dividends, and transfers such as gifts, pensions, and foreign aid.
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
The date on which the board of directors has declared a dividend.
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
A feature of a debt or credit agreement that is designed to protect the lender or creditor. It is common to characterize covenants as either positive or negative covenants.
One of the three classes of cash flows reported in the
Preferred stock paying dividends that vary with short-term interest rates.
Security paying dividends or interest that vary with short-term interest rates.
Security analysis that seeks to detect misvalued securities by an analysis of the firm's
an estimate of the increase expected in dividends
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.
internally generated funds
Cash reinvested in the firm; depreciation plus earnings not paid out as dividends.
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
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