How can one come to know that a company might give a bonus by reading the financial figures/data?

Question

Bonus shares to investors e.g. 1 share for every 2 shares held etc. Does it mean the company is growing? or a means to reward investor?

Answer 1

Read the financial on the company just as you would if you were to invest in them. Look at debt/equity ratio; net assets; dividend yields and the EPS multiple. These may indicate profit and from their you can speculate what they may do with that money, but that is it. Unfortunately there is no specific statement citing such intentions. I believe, I'm not quite sure about this though, that they sum up their fiscal performance estimates every November and with that estimate bonuses are already considered. They sometimes disperse them as soon as the holidays or in spring.

Answer 2

It is highly unlikely that a company will have an entry stating bonuses if in fact they pay them. This item is probably buried in with some expense item in it's financial statements.