Investing and Financial Markets

# What does declare a dividend mean?

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###### 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.

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.

Divisor and dividend are two very related math terms

Assuming dividend should mean divided ... 9 = 27/3

In the sentence 8 divided by 4 equals 2, 8 is the dividend.

To announce officially; proclaim: to declare a state of emergency; to declare a winner.

what causes a company's dividend rise faster than it's own profits dictate.

The dividend is 97.The dividend is 97.The dividend is 97.The dividend is 97.

Dividend in the business sense is defined as an outflow of cash resources to the owners of the entity as a return on their investment. If an entity does not declare dividend it can use the funds for expanding operations and growth. Hence, an entities growth is hurdled by declaring dividends. However most entities tend to strike a balance between growth and dividend.

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

Let's say the dividend payable is \$110. When the dividend is declared (eg the decision is made to pay a dividend but the dividend and tax won't be paid until, say, the first day of next month) then the entry is: Debit "Dividends Expense" (Expense Account) \$110 Credit "Dividend Payable Parent Company" (Liability Account) \$100 Credit "Dividend Tax Withheld" (Liability Account) \$ 10 When the dividend and Tax is actually paid (eg it is now the first day of next month) the entry is: Debit "Dividend Payable Parent Company" (Liability Account) \$100 Debit "Dividend Tax Withheld" (Liability Account) \$ 10 Credit "Bank Account" (Asset Account) \$110

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.

The amount you want to divide up. dividend &divide; divisor = quotient. Example: in 12 &divide; 3 = 4, 12 is the dividend. Hope this helps.

If dividend income received: Debit Cash / bank Credit Dividend income If dividend income receivable: Debit Dividend income receivable Credit Dividend income

the number thats divided by another number

It means that the divisor does not go into the dividend evenly.

If you mean 98 divided by 7 then it is 14

(current month's dividend - last month's dividend) / last month's dividend using dividend per share amount

A dividend is a no. which is divided

A declared cash dividend is recorded by debiting the dividend account and crediting the dividend payable account.

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

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