Dividend Disbursing Agent


Also found in: Acronyms.

Dividend Disbursing Agent

A commercial bank or financial_institution that disburses dividend to the securityholders. Usually a Transfer Agent is also the Dividend Disbursing Agent.

Dividend Disbursing Agent

A financial institution that, for a fee, distributes dividends to shareholders in a publicly-traded company, investment company, or a similar company. A dividend disbursing agent is particularly important because so many investment companies have a large number of investors who each have a small amount of equity. See also: Transfer Agent.
References in periodicals archive ?
serves as the Fund's Transfer and Dividend Disbursing Agent while NBD Bank (a wholly owned subsidiary of First Chicago NBD Corp.
Southern Company Services, as Transfer Agent and Dividend Disbursing Agent, will be responsible for notifying each registered holder by first class mail.
RESOLVED FURTHER, that the officers of this Corporation be, and each of them hereby is, authorized, empowered and directed to transfer funds to the Corporation's dividend disbursing agent and to give such instructions and to take any other such actions as may be deemed necessary or appropriate to carry out the foregoing resolutions.
Southern Company Services, as Transfer Agent, Registrar and Dividend Disbursing Agent, will be responsible for notifying each registered holder by first class mail.