Investor Glossary-dividendInvestor Glossary-dividendInvestor Glossary-dividendInvestor Glossary-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

Dividend

The HTML to link to this page
 

A dividend is a payment by a corporation to its shareholders. Dividend payment may come in different forms, such as cash, stock, or (rarely) property. For most shareholders dividend payments are taxable as ordinary income. All decisions concerning dividend imbursement are made by the board of directors of the corporation. Although in principle dividends are portions of company earnings, most corporations are not eligible to receive tax deductions on dividend payment. Traditionally, dividends tend to be offered by well established, stable, secure blue chip companies. In effect, the financial reward offered by the dividend compensates for a rather stagnant movement of the stock. Conversely, more dynamic companies do not offer dividends as their profits are reinvested to secure superior growth.



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


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