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What is small constant dividend per share plus extra dividend policy?

A policy of paying a low regular dividend plus a year-end extra in good years is a compromise between a stable dividend and a constant payout rate.This policy gives the firm flexibility.


What is the part of the profit that is shared with the shareholders?

Dividend


Why should investors consider buying dividend stocks?

Investors should consider buying dividend stocks because they provide a steady stream of income through regular dividend payments, which can help to offset market volatility and provide a source of passive income. Additionally, dividend stocks can offer potential for long-term growth and can be a reliable source of returns, making them a valuable addition to a diversified investment portfolio.


What is a dividend in the stock market?

Dividends are payments made by a corporation to its shareholder members. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. Many corporations retain a portion of their earnings and pay the remainder as a dividend. For a joint stock company, a dividend is allocated as a fixed amount per share. Therefore, a shareholder receives a dividend in proportion to their shareholding. For the joint stock company, paying dividends is not an expense; rather, it is the division of an asset among shareholders. Public companies usually pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a special dividend to distinguish it from a regular one. Dividends are usually settled on a cash basis, as a payment from the company to the shareholder. They can take other forms, such as store credits (common among retail consumers' cooperatives) and shares in the company (either newly-created shares or existing shares bought in the market.) Further, many public companies offer dividend reinvestment plans, which automatically use the cash dividend to purchase additional shares for the shareholder.


What happens to the price of a bond when a coupon is announced and to the price of a stock when dividend is announced.Why and how.Please provide suitable examples?

Generally, the price of a stock will rise around the same amount as the announced dividend. This may happen within a trading day or over a few days, because buyers are guaranteed a known return on their investment (the dividend). There is an element of risk involved in buying a share simply because it is about to go ex-dividend. A share's price will usually drop by the amount of the dividend very quickly after the ex-dividend date because new buyers won't be eligible for the dividend. Therefore, you could be holding a share that is worth less than what you paid for it and you will have to hold onto it for a while. But if the company's financials are solid, it is not unusual for the price to actually continue to rise. It depends a great deal on where the dividends are coming from, genuine profit or borrowings.

Related Questions

What type of life insurance pays a dividend?

Group life assurance


What is the dividend of ninety seven by sixty?

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


What is a life insurance policy dividend?

It's a payment made to the policy owner by the mutual insurance company when there is a profit. The policyholders are the owners of a mutual life insurance company and they share in the profits by receiving dividend payments from the insurance company.


What is the number your dividing called?

THe answer is dividend. THe answer is dividend.


What is the journal of Dividend Income?

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


Is an insurance dividend taxed currently or ever when applied to a paid up life insurance policy?

no it is not


What is the journal entry for dividends receivable?

Dividend receivable Debit Cash dividend Credit Cash Debit Dividend receivable Credit


What is Dividend Disbursement?

Dividend Disbursement


What does dividend meen?

A dividend is a no. which is divided


How do you record declared cash dividend?

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


What is the difference between a divisor and dividend?

Divisor: the number by which a dividend is divided Dividend: a number to be divided


What is relative dividend yield?

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