dividend
A taxable payment declared by a company's board of directors and given to its shareholders out of the company's current or retained earnings, usually quarterly. Dividends are usually given as cash (cash dividend), but they can also take the form of stock (stock dividend) or other property. Dividends provide an incentive to own stock in stable companies even if they are not experiencing much growth. Companies are not required to pay dividends. The companies that offer dividends are most often companies that have progressed beyond the growth phase, and no longer benefit sufficiently by reinvesting their profits, so they usually choose to pay them out to their shareholders. also called payout.
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Related Terms on BusinessDictionary
dividend capitalization model
dividend cover
classified common stock
second preferred stock
dividend equalization reserve
profitability ratios
cum dividend
x or xd
current dividend preference
available earnings
income stock
non-voting stock
Black Scholes option-pricing model
deferred dividend shares
ex
accumulation unit
experience refund
active income
company secretary
adjustable rate preferred (ARP) stock
fiscal agent
interest tax shield
stepped preferred stock
dividend growth model
junior issue
negative covenant
annual general meeting (AGM)
global depository receipt (GDR)
dividend re-investment plan (DRIP)
junior security
application of funds
receivership
gross domestic product (GDP)
liability dividend
dividend re-investment program (DRIP)
cumulative dividend preference
appropriation account
Modiglani-Miller hypothesis
dividend rollover
zero dividend preference share
cumulative return
appropriation of retained earnings
monthly income preferred shares (MIPS)
dividend valuation model
investment holding company
automatic reinvestment plan
retention ratio
retroactive rate reduction
incomes policy
doctrine of constructive receipt
average annual total return
scrip
omitted dividend
bearer security
shareholders' agreement
participating insurance
efficiency dividend
shareholder value approach
over capitalization
subscription shares
registered owner
remuneration of directors
loan capital
statement of sources and application of funds
equity income fund
directors' report
capital reserve
passive activity
distributed profits
stub stock
accumulating shares
payout ratio
dividend cover
classified common stock
second preferred stock
dividend equalization reserve
profitability ratios
cum dividend
x or xd
current dividend preference
available earnings
income stock
non-voting stock
Black Scholes option-pricing model
deferred dividend shares
ex
accumulation unit
experience refund
active income
company secretary
adjustable rate preferred (ARP) stock
fiscal agent
interest tax shield
stepped preferred stock
dividend growth model
junior issue
negative covenant
annual general meeting (AGM)
global depository receipt (GDR)
dividend re-investment plan (DRIP)
junior security
application of funds
receivership
gross domestic product (GDP)
liability dividend
dividend re-investment program (DRIP)
cumulative dividend preference
appropriation account
Modiglani-Miller hypothesis
dividend rollover
zero dividend preference share
cumulative return
appropriation of retained earnings
monthly income preferred shares (MIPS)
dividend valuation model
investment holding company
automatic reinvestment plan
retention ratio
retroactive rate reduction
incomes policy
doctrine of constructive receipt
average annual total return
scrip
omitted dividend
bearer security
shareholders' agreement
participating insurance
efficiency dividend
shareholder value approach
over capitalization
subscription shares
registered owner
remuneration of directors
loan capital
statement of sources and application of funds
equity income fund
directors' report
capital reserve
passive activity
distributed profits
stub stock
accumulating shares
payout ratio
ex all
C Corporation (C Corp)
accumulation option
portfolio income
experience rating refund
trading dividends
participating preferred stock
dividend discount model
with dividend
mutual company
date of record
declaration date
personal income tax
operating activities
defensive sectors
capital asset pricing model (CAPM)
accrued dividend
accumulated dividend
capital transaction
withholding tax
treasury stock
unearned income
automatic withdrawal
current yield
annual return
earned income
employee stock ownership plan (ESOP)
diamonds
equity fund
personal income
distribution date
preferred dividend
aggressive growth fund
double taxation
total return
financial leverage
investment income
income fund
covenant
dividend yield
cash flow statement
accumulation
ordinary income
blue chip
equity security
reinvestment
stock split
fixed income security
outstanding shares
tax credit
voting right
current liabilities
income tax
preferred stock
distribution
common stock
reserves
earnings
mutual fund
service
interest
C Corporation (C Corp)
accumulation option
portfolio income
experience rating refund
trading dividends
participating preferred stock
dividend discount model
with dividend
mutual company
date of record
declaration date
personal income tax
operating activities
defensive sectors
capital asset pricing model (CAPM)
accrued dividend
accumulated dividend
capital transaction
withholding tax
treasury stock
unearned income
automatic withdrawal
current yield
annual return
earned income
employee stock ownership plan (ESOP)
diamonds
equity fund
personal income
distribution date
preferred dividend
aggressive growth fund
double taxation
total return
financial leverage
investment income
income fund
covenant
dividend yield
cash flow statement
accumulation
ordinary income
blue chip
equity security
reinvestment
stock split
fixed income security
outstanding shares
tax credit
voting right
current liabilities
income tax
preferred stock
distribution
common stock
reserves
earnings
mutual fund
service
interest
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