What does dividend mean?

Answer 1

Dividend mean...
1. A part of a company's profit that is divided among the people with SHARES in the company.

2. BrE prize money offered in a national competition called the football pools which people can win by correctly guessing the results of football games.

3. Technical a number that is to be divided by another number.

Answer 2

When a company earns a profit, some of it is reinvested in the business and called retained earnings, and some of it can be paid to its shareholders as a dividend. The frequency of these varies by country. In the United States dividends are usually declared quarterly by the board of directors. In some other countries dividends are paid biannually, as an interim dividend shortly after the company announces its interim results and a final dividend typically following its annual general meeting. In other countries, the board of directors will propose the payment of a dividend to shareholders at the annual meeting who will then vote on the proposal.

In the United States, decisions regarding the amount and frequency of dividends is solely at the discretion of the board of directors (see Investing 101 [1] and, for example, GM's "Investor Information" [www.gm.com/company/investor_information/docs/corp_gov/gmcoi.pdf]). Shareholders are explicitly forbidden from introducing shareholder resolutions involving specific amounts of dividends (SEC Form 8-A [www.isolagen.com/pages/pdf/Form_8A_10DEC02.pdf])

Where a company makes a loss during a year, it may opt to continue paying dividends from the retained earnings from previous years or to suspend the dividend. Where a company receives a one-off gain, e.g. from the sale of some assets, and has no plans to reinvest the proceeds, the money is often returned to shareholders in the form of a special dividend.

Answer 3

Dividend is provided by a company to its shareholders when it made enough money. Comapnies sometimes share their profit in the form of dividends. The amount depends on the number of shares owned by the shareholder. A company can give dividends as small as $1 per share.

Answer 4

Dividends are used by value companies to entice shareholders to keep the stock. All companies start off as growth companies until they get "too large" and they can't keep up the same growth rate. Those "next big companies" is where shareholders like to try and make their money regardless of risk (80% of new ventures fail). That leave big companies struggling to keep their share prices up to reflect the value of the company (stocks that are lower than the value of the physical company are targeted by corporate raiders that buy the company and sell the physical bits to make their profit). To keep their job, they entice buy and hold investors with a dividend. Investors can keep the cash or use that cash to buy more stock (that's called a DRIP or dividend reinvestment plan).

Some large companies can end up on a large stockpile of cash (the total cash of the SP 500 is $500 billion) as they find no place to invest it. Shareholders get a little antsy when that happens. CEOs reward those shareholders with stock buy backs (less stock with the same demand will drive the stock price up) and dividends to unload that cash to the shareholders.

Answer 5

In a Company U can invest in 2-types
- Purchasing Equity Shares
- Buying Debentures
If u buy Debentures ...it carries Fixed Rate of Interest and The principal amount is paid on a prefixed date...that means u will earn interest irrespective whether the company makes profit or loss.

If u buy Equity shares, and if the company makes profit ....they will give u some portion of that profit...which is known as Dividend but it depends entirely upon Board of Directors....u can't claim your money & interest....so dividend is not guaranteed...

Answer 6

Dividend means Life Style Extra has an extensive glossary of financial ... Dividends are payments made to shareholders, based on the companies

Answer 7

Dividend is gain. Generally it means the gains distributed to stock holders based on per share earning by a company that distribute such earning periodically (USUALLY PER QUARTER PER SHARE). This is in addition to gains (or drops in share value).

Answer 8

in a simple way , it is a part distrubution of profits of the company to its sharesholder/share owners, they declare the divided on % basis 10% 20% depends on the company pay out

Answer 9

Money paid to you. Could be interest from bank account or from investments.

Answer 10

The money you earned from your stock.