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Home Dictionary D Dividend Aristocrat A company is a dividend aristocrat if it increases the dividend paid to shareholders for at least 25 consecutive years. Dividend Aristocrat must also be a member of the S&P 500, and some investors may add additional eligibility criteria. As a rule, these are large, established companies that no longer enjoy excessive growth. Many are largely recession-proof, with consistent earnings and rising dividends in good times and bad. Dividend aristocrats are like dividend kings, which are firms that have increased their dividends annually for over 50 years. Bird In Hand
September 25, 2022 The “tit in hand” theory says that investors prefer stock dividends over potential capital gains due to the uncertainty of capital gains. Cash Dividend
September 25, 2022 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). Compounding
September 25, 2022 Compound interest is a process in which interest is credited to the existing principal as well as to the interest already paid. Continuous Compounding
September 25, 2022 Most interest is accrued every six months, quarter or month. Convertible Preferred Stock
September 25, 2022 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. Cum Dividend
September 25, 2022 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
September 25, 2022 Dividend is the distribution of corporate profits among eligible shareholders. Dividend Growth Rate
September 25, 2022 Dividend Growth calculates the average annual growth rate of dividends paid by the company. Dividend Per Share (DPS)
September 25, 2022 Dividend per share (DPS) is the amount of declared dividends issued by the company for each ordinary share outstanding. Dividend Policy
September 25, 2022 Dividends are often part of a company’s strategy. However, they are not required to pay dividends to shareholders. Dividend Rate
September 25, 2022 The dividend rate, expressed as a percentage or yield, is a financial ratio showing how much a company pays dividends annually in relation to its share price. Dividend Recapitalization
September 25, 2022 Dividend recapitalization is when a private equity firm issues new debt to raise money to pay special dividends to investors who helped finance the original purchase of the portfolio company. Dividend Yield
September 25, 2022 Dividend yield, displayed as a percentage, is the amount of money a company pays shareholders for holding shares divided by the current price of its shares. Dividends Received Deduction (DRD)
September 25, 2022 A Dividend Received Deduction (DRD) applies to certain corporations that receive dividends from related entities and mitigates potential triple taxation effects. Ex-Date
September 25, 2022 The ex-dividend date or ex-date marks the cut-off point for shareholders to be credited in anticipation of a stock dividend. Ex-Dividend
September 25, 2022 Ex-dividends - this is when the distribution of the company’s dividends has been determined. Exempt-Interest Dividend
September 25, 2022 Interest-free dividends are mutual fund payments that are not subject to federal income tax. Form 1099-DIV
September 25, 2022 Form 1099-DIV, Dividends and Payments, is sent to investors who receive payments from any type of investment during the calendar year. Forward Dividend Yield
September 25, 2022 Forward dividend yield is the percentage of a company’s current share price that the company expects to pay out in dividends over a specified period of time, usually 12 months. Franked Dividend
September 25, 2022 Dividends at a discount are paid with a tax relief and are designed to eliminate the problem of double taxation of dividends for investors. Gross Dividends
September 25, 2022 Gross dividends for tax purposes include all ordinary dividends as well as capital gains and non-taxable amounts. Guaranteed Stock
September 25, 2022 Guaranteed shares are a rarely used form of preferred shares where a party other than the original company guarantees the payment of dividends. Interim Dividend
September 25, 2022 An interim dividend is usually one of two dividends paid by a company that generates returns to shareholders on a semi-annual basis. Non-Taxable Distribution
September 25, 2022 A tax-free distribution may be a share dividend, a stock split, or a distribution in the liquidation of a corporation. Ordinary Dividends
September 25, 2022 Ordinary or non-qualifying dividends are paid by corporations to registered shareholders.