dividend adjustment

(redirected from Dividend Adjustments)

Dividend Adjustment

A dividend given to a convertible preferred stock holder when he/she exercises the conversion option and exchanges the preferred shares for common shares. A dividend adjustment is designed to compensate a preferred stockholder for any dividends he/she otherwise would have received as a common stockholder. It is a fairly unusual practice.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

dividend adjustment

The extra proceeds sent to an investor submitting convertible preferred stock for conversion in order to compensate for dividends accrued but not received since the last date of record for a dividend payment. The dividend adjustment is an unusual practice designed to compensate holders of convertible preferred stock for dividends lost between the time of the last dividend and the time of conversion. Also called adjustment.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
Mentioned in ?
References in periodicals archive ?
Dubai index extended losses for another session to near its lowest level since November 2016 weighed by weak performance in Dubai Islamic Bank shares due to dividend adjustments.
Summary: Muscat: The MSM 30 Index witnessed a bearish trend due to effect of dividend adjustments ...
Muscat: The MSM 30 Index witnessed a bearish trend due to effect of dividend adjustments and closed at 6073.36 points, down by 1.64 per cent.
Today, Statoil said it had received total proceeds of NOK8.3bn (USD1.4bn/EUR1.1bn) for its SFR stake after dividend adjustments, with a net income from the disposal seen at between NOK5.5bn and NOK6bn.
Further, the company reconfirmed its dividend policy to pay 30% to 35% of trailing diluted earnings per share, excluding items, with dividend adjustments to be considered in the first quarter of each year.
We develop an empirically tractable dynamic model of discrete dividend policy based on an inter-temporal coarse signaling framework in which dividend adjustments signal only substantial variations in the permanent earnings of the firm.
The empirical model is one of the first time-series firm dividend models with a direct relation between dividend adjustments and changes in the permanent earnings of the firm.
This equation captures the effects of two distinct short-term dividend adjustments. First, the equation captures the adjustment of dividends to changes in the equilibrium dividend levels resulting from changes in earnings.
Since insurance company managers have more information about the firm's financial condition and future claims than investors, dividend adjustments may contain some of this asymmetric information.
Mixed trend in GCC GCC markets closed the week on a mixed note with Kuwait, Bahrain and Oman ending in the green while the other markets closed lower, partly due to cash dividend adjustments in some index stocks.