A detailed explanation of cash dividends, their types, taxation, significance, historical context, and comparison with stock dividends and yield.
Speculative stocks known as 'CATS AND DOGS' typically have short histories of sales, earnings, and dividend payments. They gain attention in bull markets where even risky investments see appreciation.
A comprehensive understanding of Class A and Class B shares, including their differences in voting rights, dividend preferences, and other unique characteristics.
A comprehensive explanation of Common Stock, its characteristics, associated risks, and benefits in the context of corporate ownership.
A comprehensive guide to Cumulative Dividends including their definition, types, examples, historical context, and applicability in finance, particularly associated with Cumulative Preferred Stock.
Cumulative Preferred Stock is a type of preferred stock where unpaid dividends accumulate until they are paid out, taking precedence over common stock dividends.
The Date of Record is the date on which a corporation utilizes its list of stockholders to mail out dividend checks, typically two days after the ex-dividend date. Also known as the record date, this is a crucial concept in dividend distribution.
In life insurance, a dividend addition refers to the increase in policy value, purchased with the dividends generated by the policy, and added to the original face value.
A detailed overview of the Dividends-Paid Deduction, its applicability in computing the accumulated earnings tax and the personal holding company tax.
A comprehensive explanation of the Dividends-Received Deduction, a tax deduction allowed to a corporation owning shares in another corporation for the dividends it receives.
A comprehensive overview of double taxation, explaining how federal tax law affects earnings at the corporate level and dividends of stockholders, including examples, historical context, applicability, and related terms.
Earned Surplus, commonly referred to as Retained Earnings, represents the cumulative portion of net income that a company retains rather than distributes as dividends to shareholders.
An Equity Real Estate Investment Trust (REIT) is a type of REIT that holds ownership in real estate properties, generating income from rents and capital appreciation.
A comprehensive guide to the ex-dividend date, its importance, and how it impacts investors and stock prices.
Comprehensive explanation of extraordinary dividends, including their characteristics, implications, types, and examples.
A fractional share represents a unit of stock that is less than one full share. It occurs as a result of stock dividends, stock splits, or through direct fractional share purchasing programs.
The Holder of Record is the owner of a company's securities as recorded on the issuer's books or its transfer agent on a specific date.
An in-depth look at the concept of illegal dividends, including what they are, their legal ramifications, and how they differ from legal dividends. Also covers historical context, types, related terms, and FAQs.
In-kind distribution refers to the distribution of assets or property instead of selling assets and distributing the cash proceeds.
An Income Fund is a type of mutual fund that aims to generate steady income for its shareholders, typically through a mix of bonds and dividend-paying stocks. This entry explores different types of income funds and their characteristics.
An Insurance Company, also known as an Insurer, is an organization that evaluates, underwrites, and issues insurance policies to policyholders. There are two principal types of insurance companies: Mutual and Stock companies. This entry elaborates on their distinctions, operations, and profit distribution.
A detailed guide on Investment Income [Portfolio Income] including dividends, interest, and gains from the sale of investment property. Explore related concepts such as Investment Interest Expense and Kiddie Tax.
Mutual Associations are cooperative financial institutions similar to Savings and Loan Associations where members' deposits represent shares, affording them voting rights and dividends.
An omitted dividend is a dividend that was scheduled to be declared by a corporation but was not voted on by the board of directors. This article explains the reasons behind omitted dividends, their implications, and how they relate to cumulative preferred stock.
Outstanding capital stock refers to the shares in the hands of stockholder, which are crucial in the calculation of dividends and represent the total voting power in a corporation.
Owner's Equity represents the portion of a company's assets that belong to the owners, including capital investments and accumulated earnings, less any dividends or other financial obligations, essential for understanding company value and financial health.
A detailed overview of Participating Insurance Policies, explaining how they pay dividends to policy owners.
A comprehensive definition and explanation of Participating Policy in Insurance, where the insured receives dividends based on company earnings.
An in-depth explanation of 'Passed Dividend,' its significance in finance, its types, historical context, and its impact on shareholders.
Detailed examination of Passive Investment Income (PII), including its definition, types, and relevance in the context of S Corporations and beyond.
The Payout Ratio underscores the proportion of a company's earnings allocated to shareholders in dividends, providing insights into financial health and dividend policies.
An in-depth look into Performance Stock, a high-growth security that investors believe will rise in value significantly, also known as Growth Stock.
Plowing back profits refers to reinvesting a company's earnings in the business rather than paying out those profits as dividends.
Preferred Stock is a category of capital stock that provides certain privileges over common stock, including priority in dividend distribution and asset allocation upon dissolution of a corporation.
Prior-Preferred Stock is a category of Preferred Stock that holds precedence over other preferred stock issues and common stock in terms of dividend payments and claims on assets during liquidation.
The term 'Quarterly' refers to events, publications, or reports that occur every three months, making up one-quarter of a year. This term is significant in various fields such as finance, where it denotes the basis for earning reports and dividend payments.
A detailed exploration of the Retained Earnings Statement, explaining the reconciliation of beginning and ending balances in the retained earnings account, such as how profits, losses, dividends, and other items impact it.
Comprehensive overview of Retained Earnings, Appropriated, including definitions, types, historical context, examples, and applicability.
Stock Insurance Companies are group entities owned by stockholders, where earnings are distributed as shareholder dividends. Under state laws, policyholders' interests take precedence over stockholders'.
An in-depth look at the definition and role of a Stockholder of Record, the individual or entity registered on a corporation's books as owning shares on a specified date, eligible for dividends and distributions.
A comprehensive look into Undivided Profit, a crucial element on a bank's balance sheet representing profits that have neither been paid out as dividends nor transferred to the bank's surplus account.
Widow-and-Orphan Stock refers to a type of stock that pays high dividends and is considered very safe. Typically, these stocks have a low beta coefficient and are involved in non-cyclical businesses.
A comprehensive exploration of the Bird In Hand theory in investing, detailing its definition, strategic implications, and practical examples, supported by historical context and real-world applications.
Explore the concept of cum dividend, understand its definition, working mechanism, and see practical examples. Learn how it affects stock trading and investment strategies.
A comprehensive guide to Dividend Aristocrats, covering their definition, criteria for inclusion, examples, benefits, and drawbacks.
An in-depth exploration of dividend recapitalization, its mechanisms, implications, and real-world examples.
Discover the power of dividend reinvestment plans (DRIPs) in growing your investments by automatically reinvesting cash dividends into additional shares, leveraging the potential for compounded returns.
The Dividends Received Deduction (DRD) is a key tax provision that eliminates the issue of triple taxation for certain U.S. corporations.
An in-depth exploration of dividends, including their definition, various types, and the mechanisms by which payments are distributed to shareholders. Learn how dividends work in the stock market and their impact on investments.
An in-depth look at the ex-dividend classification in stock trading, its importance for investors, and key dates to be aware of for maximizing dividends.
An in-depth guide to understanding the ex-dividend date, its significance in the trading of securities, and practical examples to illustrate its impact.
An in-depth exploration of fiscal quarters, their significance in financial reporting, and their impact on earnings and dividends.
A comprehensive guide on filing Form 1099-DIV, which details dividends and distributions received from investments, providing essential steps, guidelines, and considerations for accurate tax reporting.
An in-depth exploration of franked dividends, their types, examples, and how they address double taxation issues for investors.
A comprehensive guide to the Gordon Growth Model (GGM), exploring its formula, practical examples, historical context, and application in determining the intrinsic value of a stock based on future dividends.
Comprehensive guide to understanding gross dividends, including their definition, operational mechanics, and illustrative examples.
An in-depth exploration of Guaranteed Stock, including its definition, how it works, its benefits, and key considerations.
A comprehensive guide to understanding homemade dividends, how they function in investment portfolios, their implications, and practical examples.
Comprehensive guide to understanding income funds, their various types, and illustrative examples of income-generating securities.
Comprehensive guide on Income Stocks, detailing their definition, how they work, examples, and additional considerations for investors.
An in-depth look at interim dividends, including payment procedures and eligibility criteria for shareholders.
An in-depth exploration of investment income, detailing its definition, various examples, and the tax treatment applicable to different types of investment income.
An in-depth exploration of junior equity, providing comprehensive definitions, practical examples, and highlighting the advantages of this lowest-priority corporate stock.
Comprehensive guide on non-taxable distributions, including definitions, examples, and tax implications.
A comprehensive guide on noncumulative preferred stock, explaining its definition, mechanisms, various types, and real-world examples. Understand how noncumulative preferred stock differs from cumulative preferred stock and its implications for investors.
Comprehensive overview of ordinary shares, including their definition, functionality, advantages, and key considerations in financial markets.
A comprehensive guide to understanding paid-up additional insurance, its definition, benefits, and the critical role of dividends in enhancing whole life insurance policies.
Comprehensive guide to understanding participating preferred stock, including its mechanism, examples, special considerations, and benefits.
An in-depth guide to understanding the payout ratio, including its definition, practical applications, different methods of calculation, and analytical insights.
An in-depth exploration of preferred dividends, their characteristics, priority over common shares, and their significance in investment portfolios.
An in-depth look at qualified dividends, including their definition, taxation rate, IRS requirements, and more.
Quarterly Income Preferred Securities (QUIPS) are hybrid financial instruments combining characteristics of both bonds and stocks, offering companies a way to raise funds and investors the opportunity to receive regular dividends.
Explore the concept of rebates in short sale transactions, including definitions, types, real-world examples, and a detailed comparison with discounts.
Discover what the record date is in finance, its significance for shareholders, and see an example that illustrates its application in dividend distribution.
Explore the concept of reinvestment, including its definition, practical examples, and the potential risks involved. Learn how reinvesting dividends and interest can impact your investment strategy.
A comprehensive guide on the retention ratio, covering its definition, formula, limitations, and practical examples for better understanding.
Learn about stock dividends, how they work, their advantages and disadvantages, and a detailed example of their application.
Explore the comprehensive definition and characteristics of a Total Return Index, including examples and a detailed comparison with a Price Index.
Explore the concept of Total Shareholder Return (TSR), a key performance metric that factors in capital gains and dividends to measure the returns investors earn from stocks. Learn how to calculate TSR and understand its critical importance in evaluating stock performance.
An in-depth look at transfer agents, their roles in managing shareholder records, ensuring timely dividend distributions, and other vital functions in finance.
Explore the fundamentals of preference shares, their characteristics, and the various types of preferred stock.
A comprehensive guide to defensive stocks, including their characteristics, advantages, disadvantages, and examples of well-established companies that fit this investment profile.
An in-depth exploration of unpaid dividends, including their definition, how they work, and practical examples.
An in-depth exploration of Vanishing Premium Policies, including their meaning, historical context, real-life examples, and considerations for policyholders.
