Dividend Disbursing Agent

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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.