Ex-dividends - this is when the distribution of the company’s dividends has been determined.
The ex-dividend date of a stock is the day the stock starts trading without a subsequent dividend value.
Investors who purchased shares before the ex-dividend date are eligible for the next dividend payment, while those who purchased shares on or after the ex-dividend date are not.
The ex-dividend date is earlier than the record date because the stock trade is settled on a “T+1” basis, which means that the record of this trade does not settle within one business day.
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.
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 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, displayed as a percentage, is the amount of money a company pays shareholders for holding shares divided by the current price of its shares.
A Dividend Received Deduction (DRD) applies to certain corporations that receive dividends from related entities and mitigates potential triple taxation effects.
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.