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.
Mentioned in these terms
Related Terms on BusinessDictionary
dividend capitalization model
dividend cover
second preferred stock
profitability ratios
ex
x or xd
classified common stock
dividend equalization reserve
non-voting stock
cum dividend
current dividend preference
income stock
available earnings
Black Scholes option-pricing model
deferred dividend shares
remuneration of directors
interest tax shield
loan capital
equity income fund
stepped preferred stock
directors' report
junior issue
capital reserve
distributed profits
junior security
receivership
accumulating shares
liability dividend
ex all
Modiglani-Miller hypothesis
C Corporation (C Corp)
zero dividend preference share
experience rating refund
accumulation option
monthly income preferred shares (MIPS)
investment holding company
experience refund
retention ratio
accumulation unit
retroactive rate reduction
active income
company secretary
fiscal agent
adjustable rate preferred (ARP) stock
scrip
dividend growth model
omitted dividend
negative covenant
global depository receipt (GDR)
annual general meeting (AGM)
dividend re-investment plan (DRIP)
gross domestic product (GDP)
shareholders' agreement
application of funds
dividend re-investment program (DRIP)
cumulative dividend preference
shareholder value approach
appropriation account
dividend rollover
over capitalization
cumulative return
subscription shares
appropriation of retained earnings
dividend valuation model
registered owner
statement of sources and application of funds
automatic reinvestment plan
incomes policy
doctrine of constructive receipt
passive activity
stub stock
payout ratio
dividend cover
second preferred stock
profitability ratios
ex
x or xd
classified common stock
dividend equalization reserve
non-voting stock
cum dividend
current dividend preference
income stock
available earnings
Black Scholes option-pricing model
deferred dividend shares
remuneration of directors
interest tax shield
loan capital
equity income fund
stepped preferred stock
directors' report
junior issue
capital reserve
distributed profits
junior security
receivership
accumulating shares
liability dividend
ex all
Modiglani-Miller hypothesis
C Corporation (C Corp)
zero dividend preference share
experience rating refund
accumulation option
monthly income preferred shares (MIPS)
investment holding company
experience refund
retention ratio
accumulation unit
retroactive rate reduction
active income
company secretary
fiscal agent
adjustable rate preferred (ARP) stock
scrip
dividend growth model
omitted dividend
negative covenant
global depository receipt (GDR)
annual general meeting (AGM)
dividend re-investment plan (DRIP)
gross domestic product (GDP)
shareholders' agreement
application of funds
dividend re-investment program (DRIP)
cumulative dividend preference
shareholder value approach
appropriation account
dividend rollover
over capitalization
cumulative return
subscription shares
appropriation of retained earnings
dividend valuation model
registered owner
statement of sources and application of funds
automatic reinvestment plan
incomes policy
doctrine of constructive receipt
passive activity
stub stock
payout ratio
average annual total return
bearer security
portfolio income
participating insurance
efficiency dividend
participating preferred stock
trading dividends
capital asset pricing model (CAPM)
accrued dividend
accumulated dividend
capital transaction
with dividend
mutual company
dividend discount model
operating activities
date of record
declaration date
personal income tax
withholding tax
defensive sectors
employee stock ownership plan (ESOP)
diamonds
treasury stock
equity fund
unearned income
distribution date
annual return
automatic withdrawal
current yield
earned income
personal income
aggressive growth fund
double taxation
preferred dividend
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
bearer security
portfolio income
participating insurance
efficiency dividend
participating preferred stock
trading dividends
capital asset pricing model (CAPM)
accrued dividend
accumulated dividend
capital transaction
with dividend
mutual company
dividend discount model
operating activities
date of record
declaration date
personal income tax
withholding tax
defensive sectors
employee stock ownership plan (ESOP)
diamonds
treasury stock
equity fund
unearned income
distribution date
annual return
automatic withdrawal
current yield
earned income
personal income
aggressive growth fund
double taxation
preferred dividend
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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