Investor Glossary-cash dividendInvestor Glossary-cash dividendInvestor Glossary-cash dividendInvestor Glossary-cash dividendInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Cash Dividend

The HTML to link to this page
 

A cash dividend is the distribution of a company's profits to it's shareholders. Although every company is unique, dividends are typically paid quarterly, and the amount is determined by the board of directors. Investors seeking the highest possible profits often reinvest their cash dividend back into the company. Many companies avoid giving a cash dividend because of the dividend tax. A dividend tax is a tax shareholders must pay on their cash dividend. Companies who do use a cash dividend choose to use one partly because it suggests the financial stability of their company and makes their stock more attractive to investors. Many companies will consistently increase their cash dividend, even if their earnings are low. They do this because a consistently increasing cash dividend suggests stability and continuous growth.



Rate this cash dividend definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: FICO score, Key Rate Duration, implied volatility, 144a, required rate of return, class C shares, open position, Zero Cost Collar, ex-dividend date, retained earnings, LIBOR, stock split, EBITDA, ex-dividend, limit order, balance sheet, FTSE, deferred tax, liquidity ratio, 1031 exchange, per diem, deferred revenue, reverse mortgage, cancelled check, stock market close, margin rate, current ratio, diluted share, dividends payable, real GDP, in escrow, risk management, APR, irrevocable trust, command economy, quality assurance, wholly-owned subsidiary, 1035 exchange, option premium, VIX, covered put, labor relations, average price per share, inflation, phantom income, minority interest, 401a, debt service coverage, annual return


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use