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

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


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
©2004-2015 Investor Glossary - All rights reserved - Terms of Use