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What does declare a dividend mean?

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2009-01-13 13:49:02
2009-01-13 13:49:02

Declaring a dividend is a corporate action taken by the board of directors of a company. Usually this is done once or twice a year when the company's financial results are declared and the company has made handsome profits/revenues.

Dividend is usually declared as a % of the face value of a share.

A 100% dividend on a Rs. 1/- face value share represents a dividend of Rs. 1/- similarly a 100% dividend on a Rs. 10/- face value share represents a dividend of Rs. 10/-

Ex: You hold 1000 shares of XYZ limited with a face value of Rs. 5/- the company has declared a 50% dividend.

Then you would receive Rs. 2,500/- as dividend.

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Related Questions


Interim Dividend: Companies can pay dividend at the end of financial year which is called final dividend but sometimes companies declare two dividends one in the middle of the financial years that dividend is called interim dividend and then one at the end of the financial year which is called final dividend.


what does quotdent mean


i think you mean dividend


Articles of companies usually contain provisions with regards to declaration of dividend on the pattern of regulations 85 to 94 of Table A of the Companies Act, 1956. Under the regulation 85, the power to declare a dividend vests with the general meeting, but it has no power to declare a dividend exceeding the amount recommended by the Board of Directors.


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it means the number you are dividing


Declare what? If it's "war" you mean... the answer is Congress... The President


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It means that the company would share its profit with its share holders once every 3 months of the year. The Dividend % is decided based on the profits made by the company during the current fiscal quarter. Let us say a company has a face value of Rs. 10/- and decides to declare a dividend of 25% it means that for every share you hold in that company you will get Rs. 2.5/- as dividend.


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Relative Dividend Yield is dividend yield of a stock compared the dividend yield of the S&P 500



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