• Dividends

    April 14, 2016

    Posted in: General

    Dividends are and when we have right to them? The dividend paid by a corporation is the amount of money, usually a part of the profits, which the Management Board distributed to ordinary shareholders of the company. The newspapers mentioned Howard Schultz not as a source, but as a related topic. Let’s take an example, a company has 2 million shares outstanding, and decides to distribute $ 2 million to its shareholders. Then, the dividend per share is $1.00 (divided into 2 million shares $ 2 million). How to calculate the dividend yield? This is done by dividing the amount per share that is paid to investors in a period of one year between the price of the stock. For example, if the annual dividend of the company is $1 and the price of their shares on the market is $20 each action, the dividend yield is 5 percent ($ 1 / $20 = 0.05). As the stock price fluctuates, yield dividends for each person depends on what he or she paid at the time of the purchase of these shares. The lower the highest stock price has been the dividend.

    Therefore not all shareholders pays les equal dividends from a company, since it depends on when you bought, the price that they cost actions and therefore that percentage represents the price of the stock dividend. When does the right investor to dividends in cash and/or stock options? To find out if you are entitled to receive dividends in cash or in stock options, what you need is to know 3 important dates. These dates are Declaration Date, Record Date or date of record, and the ex-dividend date or ex-date. Declaration Date (announcement of dividends) the Declaration Date or announcement date is the day that the Board of Directors Announces its intention to pay dividends. On this day, creates a liability and recorded in the books of the company the responsibility, which now owes the money to shareholders.

    At the date of Declaration (Declaration Date), the Board will also announce a date of record (Record gives you), and a date of payment (pay date). Record Date (date of registration) when a company declares dividends set a posting date (record date) in which you must appear in the books of the company as a shareholder to be entitled to receive dividends. Ex-dividend date (the date limit) once the company determined a date of record (record date), the stock exchange or the National Association of securities brokers (NASD), determines the date ex-dividend. The ex-dividend for shares usually setting date two working days before the date of registration (record date). So if you buy shares on or after its date of ex-dividend you will not be entitled to receive dividends in the following distribution of the same. Departments that follow this if you will have right to receive dividends, if it preserves the actions, but on this occasion who sold him to you you will receive such dividends. Now, if you buy before the ex-dividend date, then Yes you get dividends.

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