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| Sunday, October 5, 2008 |
| Dividend |
Let's talk about Dividend.
Cash Dividends, as the name implies, they are payments made to shareholders in cash. They basically come in three forms:
1. Regular dividends occur when a company pays out a portion of profits on a consistent schedule (e.g. Quaterly). A long-term record of stable or increasing dividends is widely viewed by investors as a sign of a company's financial stability.
2. Special dividends are used when the company does not have a regular dividend schedule or if favourable circumstances allow the firm to make a one time cash payment to shareholders. Other names for special dividends include "extra dividends" and "irregular dividends".
3. Liquidating dividends occur when a company goes out of business and distributes the proceeds to shareholders. For tax purposes, a liquidating dividend is treated as a return of capital and amounts over the investor's tax basis are taxed as capital gains. |
posted by NOSNIM™ @ 4:34 PM  |
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