Investor Glossary-dividend clawbackInvestor Glossary-dividend clawbackInvestor Glossary-dividend clawbackInvestor Glossary-dividend clawbackInsightful 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

Dividend Clawback

The HTML to link to this page
 

A dividend clawback is an incentive for investors to keep investment development plans on schedule. Dividend clawback means a promise by investors to return dividends as equity to the investment if any cash deficiencies occur. A divended clawback pays for any investment shortfall from project cost overruns. For example, if 20 investors received $20 million in dividends and later a $10 million shortfall occurs, the dividend clawback to fund the deficiency is $10 million. If there is no investment shortfall, no dividend clawback is paid. Dividend clawback contracts are most common in project finance. When investors pay a dividend clawback they do not pay cash, they pay prior dividends already received in order to add equity to the project. The dividend clawback amount is always limited to the project's cash shortage and does not provide capital for new plans.



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


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