Investor Glossary-dividend rateInvestor Glossary-dividend rateInvestor Glossary-dividend rateInvestor Glossary-dividend rateInsightful 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 Rate

The HTML to link to this page
 

The dividend rate is the amount of dividends per share a company pays to stockholders over a period of time. If the board of directors of XYZ Company declares a quarterly dividend of 22 cents per common share, the quarterly dividend rate is $.22. Some companies pay quarterly dividends based on a stated annual dividend rate (in the example, the annual dividend rate would be $.88). Whether stated or not, a dividend rate is often annualized to present the most recent quarterly dividend on a full-year basis. For preferred stock, the dividend rate is usually expressed as a percentage of par value. For example, preferred shares with a $100 par value and a 6% dividend rate would pay dividends of $6 per year. Dividend rate is also commonly used by financial institutions and investment companies to describe income distributions. For a mutual fund, the dividend rate is the most recent rate at which the fund distributes dividend and interest income. For a credit union, the dividend rate is comparable to the interest rate paid on deposits at banks.



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


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