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


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use