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dividend
dividend
A Dictionary of Business and Management
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2006
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© A Dictionary of Business and Management 2006, originally published by Oxford University Press 2006. (Hide copyright information)
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dividend 1. The distribution of part of the earnings of a company to its shareholders. The dividend is normally expressed as an amount per share on the
par value of the share. Thus a 15% dividend on a £1 share will pay 15p. However, investors are usually more interested in the
dividend yield, i.e. the dividend expressed as a percentage of the share value; thus if the market value of these £1 shares is now £5, the dividend yield would be 1/5 × 15% = 3%. The size of the dividend payment is determined by the board of directors of a company, who must decide how much to pay out to shareholders and how much to retain in the business; these amounts may vary from year to year. In the UK it is usual for companies to pay a dividend every six months, the largest portion (the
final dividend) being announced at the company's AGM together with the annual financial results. A smaller
interim dividend usually accompanies the interim statement of the company's affairs, six months before the AGM. In the USA dividends are usually paid quarterly. See also
dividend cover;
yield.
Interest payments on
gilt-edged securities are also sometimes called dividends although they are fixed.
2. A payment made by a
co-operative society out of profits to its members. It is usually related to the amount the member spends and is expressed as a number of pence in the pound.
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Dividends Finally Get Their Due.
Newspaper article from: Knight Ridder/Tribune Business News; 9/21/2003; 700+ words
; ...renewed interest in dividends. Take First American...shareholders have gotten a dividend annually since 1909. Today's attention toward dividends nudged its directors...one study found, the dividends investors got equaled...era's total return. Dividend-paying members of...
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 "The Economist (US)")
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Dividends' end; Economics focus.(Dividends have long seemed to be dying. Should technology ompanies revive them?)(Brief Article)
Magazine article from: The Economist (US); 1/12/2002; 700+ words
; ...the level of dividends should have no...share. This "dividend irrelevance...never paid a dividend? Surely initiating dividends must work wonders...efficient than dividends, thanks to higher...rates applied to dividend income than to...
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Dividends May Merit New Study.
Newspaper article from: Knight Ridder/Tribune Business News; 1/11/2003; 700+ words
; ...the taxation of dividends makes dividend-paying stocks...largest firms pay dividends, according to Standard...Poor's. Their dividend yield -- the dividend...which has paid dividends since 1907. The dividend tax break is expected...
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Dividend initiations and earnings surprises.(Special Issue: Dividends)
Magazine article from: Financial Management; 9/22/1998; ; 700+ words
; ...shareholders. To justify dividend costs, two explanations...usually given: dividends are used to solve...that initiate dividends (henceforth "initiating" or "dividend-initiating...initiate similar dividends. We find that dividend commitments represent...
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Dividends and short accounts.(BUSINESS)(NET WORTH)
Newspaper article from: San Francisco Chronicle; 8/12/2004; ; 700+ words
; ...be Nov. 15. The dividend will be paid Dec...setting $32 billion in dividends. The special dividend amounts to almost...tax on the pseudo-dividend. Last year's tax...on most corporate dividends to a top rate of 15...
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Dividends show worth in a bear market
Newspaper article from: Chicago Sun-Times; 11/24/2002; ; 700+ words
; ...future earnings will pay dividends. Thus a dividend payment serves as a signal...shareholders in the form of dividends. The dividend push Many studies have...avoid double taxation with dividends by holding dividend-yielding stocks in your...
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Dividend a tip-off to a company's prospects
Newspaper article from: Chicago Sun-Times; 10/28/2001; ; 700+ words
; ...coming year and the dividend payments continued...For many years, dividends were the major source...business, bypassing dividend payments altogether...concerned about dividends? The answer is...earnings, from which dividends are paid, and then...pays taxes on all dividend payments ...
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Dividends Continue Surging in 2005; Heightened Dividend Activity Boosts S&P 500 Dividend Income 15.6 Percent in 1st Quarter
Newspaper article from: U.S. Newswire; 4/6/2005; 700+ words
; ...which analyzes dividend activity in the...increasing and initiating dividends compared to last...record year for dividend shareholders. Surging...increased use of dividends is realigning earnings growth with dividend growth which is...
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Dividends and Taxes: A Re-Examination.
Magazine article from: Financial Management; 6/22/2000; ; 700+ words
; ...important aspect of dividend policy that should...investors' demand for dividends. Should individual...only during the ex-dividend months. For example...that pays quarterly dividends is classified in the zero dividend-yield group in...
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 "The Record (Bergen County, NJ)")
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Dividends starting to look good
Newspaper article from: The Record (Bergen County, NJ); 3/10/2004; ; 700+ words
; ...tomorrow, but put a dividend in my hand today." Dividends also offer some...increasing their dividends. Standard...Poor's lists "dividend aristocrats...of increasing dividends every year. Also, a 2 percent dividend starts sounding...
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Dividends
Encyclopedia entry from: Encyclopedia of Small Business
...a low regular dividend and declare special dividends when annual earnings...relationship between dividend policy and corporate...is that since dividends are taxed as...Michaely. Dividend Policy . N...Thinking Behind Dividends." The Complete...
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dividend
Book article from: The Columbia Encyclopedia, Sixth Edition
...cash. Liquidation dividends are the return of...form of liquidation dividend. The dividend from...to pay the whole dividend on preferred stock...to pay back those dividends before anything...obligations. Preferred dividends differ from interest...paid. The term dividend is ...
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dividend cover
Book article from: A Dictionary of Business and Management
dividend cover The number of times a company's dividends to ordinary shareholders...In the USA, the dividend cover is expressed...ratio , the total dividends paid as a percentage...price–dividend ratio .
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Stock Dividend
Encyclopedia entry from: West's Encyclopedia of American Law
...corporation declares a stock dividend, it adds undivided...cannot be used to pay dividends, to the capital invested...declaration of the stock dividend); however, the cash...Shares issued as stock dividends are evidence that additional...increases following a stock dividend. A stock ...
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bonus dividend
Book article from: A Dictionary of Business and Management
bonus dividend A dividend issued to a shareholder in addition to those expected. Typically, two dividends are issued each year. If an additional dividend is paid to shareholders, perhaps because of a takeover, this is known as a bonus dividend.
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