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Home Categories Dividend Stocks The “tit in hand” theory says that investors prefer stock dividends over potential capital gains due to the uncertainty of capital gains. Cash dividends are payments made by a company to its shareholders in the form of periodic cash distributions (as opposed to shares or any other form). Compound interest is a process in which interest is credited to the existing principal as well as to the interest already paid. Most interest is accrued every six months, quarter or month. Convertible preferred shares are a type of preferred shares that pay dividends and can be converted into ordinary shares at a fixed conversion rate after a certain period of time. Shares are dividend, which means “with dividend” when the company has declared that the dividend will be in the future, but has not yet paid them. Dividend is the distribution of corporate profits among eligible shareholders. A company is a dividend aristocrat if it increases the dividend paid to shareholders for at least 25 consecutive years. Dividend Growth calculates the average annual growth rate of dividends paid by the company. Dividend per share (DPS) is the amount of declared dividends issued by the company for each ordinary share outstanding.