Dividend Decisions

Stock Split

STOCK SPLIT DEFINITION Stock split of 5:1 simply means breaking down of 1 share of $10 face value into 5 shares of $2 face value. In other words, it …

Dividend reinvestment plan

DIVIDEND REINVESTMENT PLAN DEFINITION Dividend reinvestment plan is an option offered by the company that allows shareholders to automatically reinvest their cash dividends in the additional shares of the …

Qualified Dividend

QUALIFIED DIVIDEND DEFINITION Qualified dividends are the dividends on which capital gain tax rates are applied rather than the ordinary income tax rates. Qualified dividend tax rates are lower …

Special Dividend

SPECIAL DIVIDEND DEFINITION Special dividend is the non-recurring dividend distributed by the company to its shareholders. It is separate from the normal recurring cycle of dividends. It is also …

Interim Dividend

INTERIM DIVIDEND MEANING Interim dividend is the dividend, which is announced and paid before the company has issued its annual financial statements. It is declared by the board of …

Share Buyback

SHARE BUYBACK DEFINITION A share buyback is a transaction in which the company buys back its own shares from the market. It is also known as share repurchase. The …

Dividend yield

DIVIDEND YIELD RATIO DEFINITION Common stock investments have 2 sources of return i.e. dividend and capital appreciation. The percentage return received from dividends is known as dividend yield and …

Ex-Dividend date

To understand the concept of Ex-dividend date, we need to first understand the dividend payment timeline. Once the dividend is approved by company‚Äôs board of directors, the following timeline …