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Meaning and factors effecting dividend policy?
A dividend policy is a company's approach to distributing profits back to its owners or stockholders. If a company is in a growth mode, it may decide that it will not pay dividends, but rather re-invest its profits (retained earnings) in the business. If a company does decide to pay dividends, it must then decide how often to do so, and at what rate. Large, well-established companies often pay dividends on a fixed schedule, but sometimes they also declare "special dividends." The payment of dividends impacts the perception of a company in financial markets, and it may also have a direct impact on its stock price. From-Gudlu Mohanty....!
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 is the role of the financial services in the financial system?
Financial services will pay invoices and receive money. There will be accountants as well as legal representation in big companies in the financial services department.
Importance of profit maximization for a public limited company?
Profit maximisation let the run business perfectly and better uses of resources or to pay dividend to the shareholders however also to expand their business to attract more new shareholders or give shareholder to reinvest in their company.
What is financial barrier?
A financial barrier is where someone is unable to afford to access something because they are unable to make the payments needed to pay for it.
What is interium dividend?
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.
Why do companies no pay dividend?
Why do companies not pay dividends
Cumulative preference shares?
cumulative preference shares are those shares which get dividends for the current year and for the all previouse years if they were not paid due to the bad position of the compnay. suppose compay was suppose to pay dividends @ 10% every year to cumulative shares holders but could not pay fro two years due to bad financial position, and in the current year company is stable and willing to pay, so company will pay previouse + current year dividends to cumulative share holders, if it was non-cumulative share hoders compay would not pay all dividend, but it would pay only current year dividend. this is the difference between cumulative and non cumulative shares with respect to dividend payment. conculsion: cumulative gets all dividends if not paid earlier due to financail crises(previouse+ current) non cumulative gets only current dividend and not previouse dividend if not paid due to financial crises ( only current year dividend and all previouse are not paid)
How does stockholders of Berkshire Hathaway profit?
You profit if this stock moves up in price. It does not pay a dividend. However, it could pay a dividend in the future.
What is non-cumulative perference share?
non cumulative shares are those shares which do not get previouse dividends due to company's bad financial position. for example, if they were suppose to get dividend @10% last year, but could not get due to bad financial position of the company, and in the current year company gets stable and is willing to pay dividend, so it will pay only current year dividends and not last year dividends... if it was cumulative share company would pay last year and current year dividend.. conclusion: non cumulative share doesnot get previouse dividends and cumulative share gets all dividends (previouse+ current) when compnay restores its good financial position.
What is non cumulative perference share?
non cumulative shares are those shares which do not get previouse dividends due to company's bad financial position. for example, if they were suppose to get dividend @10% last year, but could not get due to bad financial position of the company, and in the current year company gets stable and is willing to pay dividend, so it will pay only current year dividends and not last year dividends... if it was cumulative share company would pay last year and current year dividend.. conclusion: non cumulative share doesnot get previouse dividends and cumulative share gets all dividends (previouse+ current) when compnay restores its good financial position.
Does Johnson and Johnson pay a dividend?
yes
Does a dividend payment increase cash flow?
If we pay Dividend the cash flow will decrease as money will go out
What is the meaning of unclaimed dividend?
A company has allocated funds to pay a dividend, but nobody has come forward to claim it.
Does financial aid mean scholarship?
Financial assistance from the federal and state government are grants. Financial aid may be a grant (which you don't have to pay back, usually linked to financial need)), a scholarship (which you don't have to pay back, often linked to merit-you may have to maintain a certain average or remain on a team to continue to receive this, or it may be a one-shot deal), a loan (which you do have to pay back) or a job offer (usually on campus--they pay you so that you can pay them.) You need to reapply for financial aid each year.
Does UPS pay in dividend?
yes but i dont know when
What is the importance of dividend history in finances?
Dividend history is important especially for stock investing. Without knowing the dividend history for a company, you will never know if the company will be reliable to pay the dividend every quarter.
