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dividend


Definition
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.

Related Terms

yield -

1099 -  More

accumulated dividend -

Related Terms on BusinessDictionary

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

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... part of the Dividends, Earnings, Stocks, Taxes and Investor Relations subjects.
... #84 on our list of the most popular terms.
... an essential investing term.

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