Ordinary Dividend

Ordinary Dividend

1. In the United States, any dividend that is subject to income tax rather than (lower) capital gains tax. An ordinary dividend occurs if the security from which the dividend derives has not been held for at least 61 days during a certain 121-day period (for common stock) or for at least 90 days during a corresponding 181-day period. See also: Qualified dividend.

2. Any dividend that a company pays on a regular basis most of the time. See also: Special dividend
References in periodicals archive ?
Underlying Scope Revenue year to date in line with expectations, Ongoing weak markets: H2 margins now expected to be below H1, New group cost savings target increased by $55m to $180m (Au120m) by 2017, Renewed focus on improving performance in, or exiting, low growth areas, Reducing ordinary dividend by 50%.
Investors were disappointed as management did not announce a return of cash to shareholders outside of the ordinary dividend (consensus was for a share buyback of around $3bn).
The firm is paying a dividend of JPY25 per share, including an ordinary dividend of JPY15 and a special dividend of JPY10 per share.
The insurance giant said the final ordinary dividend payout of43.
Aer Lingus, which has not made any form of distribution to shareholders since its stock market listing in 2006, said yesterday it intends to declare an ordinary dividend of three cents per share, to be paid in July.
The total dividends are composed of an ordinary dividend of HKD2,300m and a special dividend of HKD2,200m.
Group chairman Vic Cocker announced the one-off payout, which comes on top of a final ordinary dividend of 7p, at the company's annual meeting yesterday.
From this new base, we intend to pursue a progressive ordinary dividend policy that broadly reflects the growth in the group's earnings per share over the medium term.
The Board of Directors, however, has decided to pay a commemorative dividend for our 25th fiscal year (\30) in addition to the ordinary dividend, in view of our recent financial condition, and in appreciation of our shareholders' ongoing support.
This means there are more earnings and profits that (under Section 1248 for a CFC) convert a seller's gain to ordinary dividend income.
That's on top of the ordinary dividend payout of 13p for the year.
One of the more pernicious threats faced by closely held corporation shareholders is the prospect of "constructive" distributions, taxed as ordinary dividend income to the extent of available earnings and profits, for transactions in which the shareholder benefits from a corporate action.