A residual dividend is a dividend that is paid out of a company’s earnings after all other expenses have been paid. This type of dividend is typically paid to shareholders on a quarterly basis. What are the different types of shares? There are two main types of shares: common shares and preferred shares. Common shares … Read more
. Dividend Reinvestment Plans: A Great Way to Boost Your Earnings Do you pay capital gains tax on reinvested dividends? Yes, you pay capital gains tax on reinvested dividends. However, the tax rate on long-term capital gains (gains on investments held for more than one year) is lower than the tax rate on ordinary income, … Read more
The term “bird in hand” is a metaphor that is often used in the context of dividend stocks. Specifically, it refers to the situation where a company has a significant amount of cash on its balance sheet, which it can use to pay out dividends to shareholders. In many cases, dividend-paying stocks are seen as … Read more
An exempt-interest dividend is a type of dividend that is exempt from federal income tax. Exempt-interest dividends are typically paid by mutual funds that invest in tax-exempt bonds. When a fund pays an exempt-interest dividend, the dividend is not subject to federal income tax, but it may be subject to state and local taxes. Do … Read more
Callable preferred stock is a type of dividend stock that gives the issuer the right to buy back the shares at a predetermined price. The price is usually set at a premium to the current market price. The dividend payments are usually higher than those of regular preferred stock, but the shares may be called … Read more
Dividend per share (DPS) is the total dividends paid out by a company over the course of a year divided by the number of shares outstanding. DPS is a popular metric used by investors to determine the dividend yield of a stock. Dividend yield is a measure of the annualized return that a shareholder would … Read more
A due bill is a formal document that is issued by a broker-dealer to notify the buyer of a security that a dividend, interest payment, or other distribution is owed to them. The due bill is typically issued when the buyer of a security does not have the proper account status to receive the dividend, … Read more
An unpaid dividend is a dividend that has been declared by a company but has not yet been paid to shareholders. Dividends are typically paid out quarterly, but a company may choose to withhold payment if it is experiencing financial difficulties. Unpaid dividends may be reinstated at a later date if the company’s financial situation … Read more
A non-taxable distribution is a dividend paid out by a company that is not subject to taxation. This can occur for a variety of reasons, such as the company being located in a tax-exempt country or the distribution being made to a tax-exempt entity. Non-taxable distributions are often made to pension funds and other retirement … Read more
. Dividend policy: an overview Dividend policy refers to a company’s decision regarding how much of its profits it will pay out to shareholders in the form of dividends, and how much it will reinvest in the business. There are three main types of dividend policy: 1. Payout policy: This is where a company pays … Read more
