Optional dividend financial definition of optional dividend
where the shareholder
may choose how to receive it. Generally speaking, the shareholder may choose between receiving the dividend in cash
or in stock
. See also: PIK
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A dividend in which the shareholder may choose among two or more forms of payment. For example, a firm's directors may give the shareholders a choice between cash or an equal dollar amount of stock.
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.
References in periodicals archive
Maybank's Basel II-compliant hybrid securities are rated four notches below its Viability Rating to reflect the securities' deep subordination status, the presence of going-concern loss-absorption mechanisms and look-back provisions in the optional dividend
Royal Ten Cate N.V (Euronext:KTC) announced today that with regard to the optional dividend
, the number of dividend rights that grant entitlement to one new share has been fixed at 34 dividend rights of an ordinary share with a par value of EUR2.50.
The study's results suggest that scrip-paying firms may not be following optional dividend
The Group declared a second interim net dividend of 11.00 sen per share to be paid via cash or an optional Dividend
Reinvestment Scheme ("DRS").