Dividend

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Dividend

A portion of a company's profit paid to common and preferred shareholders. A stock selling for $20 a share with an annual dividend of $1 a share yields the investor 5%.

Dividend

A portion of a publicly-traded company or fund's earnings that is distributed to shareholders. The amount of earnings distributed as dividends is usually determined by the board of directors and divided by the number of shares, but preferred stock often has guaranteed dividends. Dividends exist in order to encourage investment in the company and to allow shareholders (who are really co-owners) to participate in the profits. A rapidly expanding company often pays little or nothing in dividends, as most of its earnings are reinvested in the company. On the other hand, a well-established company with solid profits likely pays relatively high dividends.

dividend

A share of a company's net profits distributed by the company to a class of its stockholders. The dividend is paid in a fixed amount for each share of stock held. Although most companies make quarterly payments in cash (checks), dividends also may be in the form of property, scrip, or stock. Unlike interest on a debt, dividends must be voted on by the company's directors before each payment. See also bond dividend, capital dividend, cash dividend, consent dividend, constructive dividend, declaration date, declared dividend, ex-dividend date, final dividend, illegal dividend, interim dividend, liability dividend, liquidating dividend, optional dividend, stock dividend.

Dividend.

Corporations may pay part of their earnings as dividends to you and other shareholders as a return on your investment. These dividends, which are often declared quarterly, are usually in the form of cash, but may be paid as additional shares or scrip.

You may be able to reinvest cash dividends automatically to buy additional shares if the corporation offers a dividend reinvestment program (DRIP).

Dividends are taxable unless you own the investment through a tax-deferred account, such as an employer sponsored retirement plan or individual retirement account. That applies whether you reinvest them or not.

However, dividends on most US and many international stocks are considered qualifying dividends. That means you owe tax at your long-term capital gains rate, provided you have owned the stocks the required length of time.

Dividends on real estate investment trusts (REITs), mutual savings banks, and certain other investments aren't considered qualifying and are taxed at your regular rate.

dividend

a payment made by a JOINT-STOCK COMPANY to its SHAREHOLDERS for providing SHARE CAPITAL. Dividends are a distribution of the after-tax PROFITS of the company, and are paid in proportion to the number of shares held. Generally the directors of a company will decide to pay out only a proportion of after-tax profit as dividends, reinvesting the remaining profits in the business (see RETAINED PROFIT).

The DIRECTORS may pay an interim dividend during the accounting period then recommend a final rate of dividend per share for approval by shareholders at the ANNUAL GENERAL MEETING, this final dividend being paid after the AGM. In the UK dividends are paid net of income tax, though shareholders receive a tax credit for the amount of tax deducted by the company from their dividends, which must be added to the net dividends received to establish the shareholder's gross taxable dividend income (see CORPORATION TAX).

dividend

a payment made by a JOINT-STOCK COMPANY to its SHAREHOLDERS for providing SHARE CAPITAL. Dividends are a distribution of the PROFITS of the company

Dividend

A stockholder's share of the profits of a corporation. An insurance dividend is not a true dividend but a return of premium. Dividends from a savings and loan association or credit union are interest, not dividends.
References in periodicals archive ?
corporations to distribute earnings to shareholders in the form of dividends. This Commentary explains that dividends are important, but investors can err by reading too much into them.
But look more closely, and you'll see another reason for the dividend. For the past three years, the company's share price has been in freefall.
Until 1988, the Chicago-based building materials company had paid a dividend for many years.
The Ninth Circuit wrote, "[i]n short, the question of whether the distributions to Participants in this case are deductible dividends under 404(k) depends on whether the Trust or the Participants owned the convertible preferred stock when the redemptions took place." It found that the district court correctly ruled that the ESOP trust owned the shares.
24411(a) provides for a deduction of 75 percent of qualified dividends in the case of a water's-edge election.
First, in IES, under the objective economic substance test, the Eighth Circuit defined the amount of income that should be considered when measuring economic substance as the gross dividend. In Compaq, the Tax Court considered the economic benefit to be the dividend, net of withholding taxes.
Eley says he prefers larger companies to pay dividends rather than start-ups or smaller corporations just making a name for themselves.
The proposed elimination of the dividend offset option seems to stem from a belief that recent changes in transfer pricing documentation requirements will soon eliminate the need for section 482 adjustments.
AB 263 reinstated an insurance company DAD of 80% of "qualified dividends" and provides an election to retroactively take it for open years ending on or alter Dec.
* Compensation expense if the company allocates the dividends to participants' accounts or if it pays them to participants out of a suspense account.
All in all, that makes preferred securities a solid bet for individuals seeking a steady income stream and better-than-average dividends.
71 (1992), that Iowa's method of taxing corporate dividends was unconstitutional.