dividend

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Related to Divident: Dividend yield

dividend,

that part of the net earnings of a corporation that is distributed to its stockholders. Dividend disbursements are based on a percentage of the par value of the stock or are a certain sum per share of no-par-value stock. They become payable only when approved by the board of directors and are usually declared at regular intervals. Obviously, dividends should not be paid unless the company has accumulated a profit or surplus. In the United States, dividends may be paid in property of various kinds, including bonds and stocks of the company or stocks of other companies first acquired for other purposes, in notes, or in cash. Dividends may be paid in stocks when the accumulated profits of a company are to be retained for reinvestment in the business. Dividends in the form of notes, often called scrip dividends, are rare; they are only paid when the company has earnings that it expects to convert into cash before the notes are due. In Great Britain, dividends are payable only in cash. Liquidation dividends are the return of the capital of a business that is being terminated. Enterprises with diminishing assets, such as mines, issue a modified form of liquidation dividend. The dividend from preferred shares of stock is a fixed percentage that must be paid before the remainder of the profit is divided among other shares. If there are not enough profits to pay the whole dividend on preferred stock, future profits may be assigned to pay back those dividends before anything is paid on common stock. Preferred stock is ranked as first and second preferred, according to the priority of its obligations. Preferred dividends differ from interest on bonds in that there is no default if the former are not paid. The term dividend is also used to refer to a fractional payment of the amount owed by a bankrupt firm to a creditor.

Dividend

 

the part of the profit made by a stockholding company that is distributed each year among the stockholders.

On the common shares the dividend is paid out in accordance with the amount of profit made by the corporation during a given year. On the preferred shares the size of the dividend is set beforehand in the form of a fixed percentage. With the growth of the share capital the total sum of the dividend also grows, and most of it goes to the large stockholders. The growth of dividends is one of the indicators of the increased income of the parasitic class of rentiers.

dividend

[′div·ə‚dend]
(mathematics)
A quantity which is divided by another quantity in the operation of division.

dividend

1. Maths a number or quantity to be divided by another number or quantity
2. Law the proportion of an insolvent estate payable to the creditors
3. Finance
a. a distribution from the net profits of a company to its shareholders
b. a pro-rata portion of this distribution received by a shareholder
4. the share of a cooperative society's surplus allocated at the end of a period to members
5. Insurance a sum of money distributed from a company's net profits to the holders of certain policies
References in periodicals archive ?
Allowances Target (%) $'97 Billion 1998 EIA Domestic w/o sinks 100 -443 Domestic+sinks 100 -365 Annex I trading+sinks 100 -210 Global trading+sinks 100 -107 Domestic+sinks+weak 100 -143 double dividend Annex I trading+sinks+ 100 -127 weak double divident Global trading+sinks+ 100 -86 weak double dividend 1999 EMF 16 No trading (mean) 100 -133 Annex I trading (mean) 100 -63 Global trading (mean) 100 -25 1998 White House/CEA "Domestic only" policy case 100 -66 Annex I trading 100 -39 Best case trading 100 -8 1997 IWG Non-price policies, moderate 22 17 (mean) Non-price policies, strong 45 30 (mean) Same plus $50/tC tax 68 2000 CEF study (IWG) Moderate scenario, no 19 40 C charge Advanced scenario, no 29 54 C charge Advanced scenario including 58 10 $50/tC charge GDP Impact in 2010 Incl.
The gain is treated as ordinary income, which is then treated as if the amount of the gain were an excess divident.
This view predicts that divident taxation should have no impact on dividend payout.
quarterly divident announcement, earnings forecast revision, etc).
Contrary to the interests of the principals (shareholders), management (agents) often have a tendency to keep divident payments low and to increase free cash flow beyond the optimum point, using the retained resources to expand and to diversify.
The amount treated as a divident is not deductible by the issuer, but for purposes of the dividends-received deduction will be treated as dividend to a corporate holder.