Asked by: Arline Roussin
personal finance options

What is a dividend example?

Last Updated: 10th February, 2020

45
The amount that you want to divide up.dividend÷ divisor = quotient. Example: in 12÷ 3 = 4,12 is the dividend. Division.

Click to see full answer.

Keeping this in consideration, what is a dividend and how does it work?

Stock dividends work similarly tocashdividends in that each shareholder gets a certain numberofadditional shares based on the number of shares already held.Let'ssay you own 500 shares of a company and that company decidestoissue a stock dividend of 5%. In that cash, you'd receive25extra shares of stock.

Secondly, what is a dividend check? The standard practice for payment of dividendsisa check that is usually mailed to stockholders a fewdaysafter the ex-dividend date, the date on which thestockstarts trading without the previously declareddividend. Thealternative method of paying dividendsis in the form ofadditional shares of stock.

Subsequently, one may also ask, what dividend means?

A dividend is a payment made by a corporationtoits shareholders, usually as a distribution of profits. Whenacorporation earns a profit or surplus, the corporation is abletore-invest the profit in the business (called retained earnings)andpay a proportion of the profit as a dividendtoshareholders.

Are dividends taxed?

Generally, any dividend that is paid out fromacommon or preferred stock is an ordinary dividendunlessotherwise stated. Qualified dividends are dividendsthatmeet the requirements to be taxed as capital gains.Undercurrent law, qualified dividends are taxed at a20%,15%, or 0% rate, depending on your taxbracket.

Related Question Answers

Cortijo Vertiprahov

Professional

Does Coca Cola pay a dividend?

Coca-Cola Performance
The quarterly dividend announcedbyCoca-Cola in February 2019 was 40 cents a share.Thatrepresents a yield of about 3.41%, roughly double theaveragedividend paid by consumer goods stocks. On April 18,2018,KO ended the day at $47.48, up 20 cents ontheday.

Alyce Beloshapkin

Professional

What stock pays highest dividend?

The 10 Highest-Yielding Dividend Stocks in theS&P500
  • Iron Mountain (NYSE: IRM) -- 7.9%
  • Macy's (NYSE: M) -- 7.0%
  • Altria (NYSE: MO) -- 6.7%
  • Occidental Petroleum (NYSE: OXY) -- 6.3%
  • Nielsen (NYSE: NLSN) -- 6.3%
  • AT&T (NYSE: T) -- 6.2%
  • AbbVie (NYSE: ABBV) -- 6.1%
  • Invesco (NYSE: IVZ) -- 6.1%

Codruta Lluesma

Professional

What are the best dividend stocks?

The best dividend stocks to buy for 2019:
  • Target Corp. (TGT)
  • Altria Group (MO)
  • CVS Health Corp. (CVS)
  • Occidental Petroleum Corp. (OXY)
  • AbbVie (ABBV)
  • Intel Corp. (INTC)
  • Cincinnati Financial Corp. (CINF)
  • Best Buy Co. (BBY)

Consagracion Kruss

Explainer

How are dividends paid out?

In the U.S., most dividends arecashdividends, which are cash payments made on a per-sharebasisto investors. For instance, if a company pays adividend of20 cents per share, an investor with 100 shareswould receive $20in cash. Stock dividends are a percentageincrease in thenumber of shares owned.

Yang Fleischman

Explainer

How often are dividends paid?

The vast majority of dividends arepaidfour times a year on a quarterly basis, but somecompaniespay their dividends semi-annually (twice ayear),annually (once a year), monthly, or more rarely, on no setschedulewhatsoever (called“irregular”dividends).

Lynna Puigcerver

Explainer

Should I sell stock before or after dividend?

Another important note to consider: as long asyoupurchase a stock prior to the ex-dividend date,youcan then sell the stock any time on orafterthe ex-dividend date and still receive thedividend.A common misconception is that investors need tohold thestock through the record date or paydate.

Hannelore Landgrabe

Pundit

What exactly is a dividend?

A dividend is the distribution of reward fromaportion of the company's earnings and is paid to a class ofitsshareholders. Dividends can be issued as cash payments,asshares of stock, or other property, though cashdividendsare the most common.

Yarina Gurster

Pundit

Is a dividend an asset?

As an investor in the stock market, any incomeyoureceive from dividends is considered anasset.However, for the company that issued the stock, thosesamedividends represent a liability.

Glenn Kirschenblatt

Pundit

What is the synonym of dividend?

Synonyms of dividend
bonus, cumshaw, donative, extra, gratuity, gravy,gravytrain, lagniappe, perk, perquisite,throw-in,tip.

Aguasantas Juerge

Pundit

What are the types of dividends?

These dividend types are:
  • Cash dividend. The cash dividend is by far the most commonofthe dividend types used.
  • Stock dividend. A stock dividend is the issuance by a companyofits common stock to its common shareholders withoutanyconsideration.
  • Property dividend.
  • Scrip dividend.
  • Liquidating dividend.

Margherita Gochi

Pundit

What is dividend per share?

Dividend per share (DPS) is the sum ofdeclareddividends issued by a company for everyordinaryshare outstanding. The figure is calculated bydividing thetotal dividends paid out by a business,including interimdividends, over a period of time by thenumber ofoutstanding ordinary shares issued.

Wanita Melesk

Teacher

Who is eligible for dividend?

A dividend is a portion of the company'sprofitspaid out to shareholders. To be eligible foradividend, you must purchase the stock during or prior tothecum-dividend trading period and hold the stock ontheex-dividend date.

Alexi Caldelas

Teacher

Are dividends paid per share?

Shareholders are usually allowed one votepershare and do not have any predetermineddividendamounts. Dividends per share are calculatedby dividing thetotal number of dividends paid out by acompany, includinginterim dividends, over a period of time,by the number ofshares outstanding.

Linnea Abulkhanoff

Teacher

How do I buy shares?

How to buy shares online?
  1. Find a good online broker.
  2. Open demat and trading account.
  3. Send money from your bank account to the brokerageaccount.
  4. Decide on the share you want to buy.
  5. Buy the share.
  6. Review positions regularly.

Mushtaq Hilgens

Teacher

Are dividends free money?

It is important to remember that dividendsaresimply the portion of a company's earnings which managementchoosesto pay out to shareholders. Finally, the paymentofdividends doesn't actually increase the value ofyourportfolio. They can be beneficial, but they aren'tfreemoney.

Sallie Ries

Reviewer

Does Warren Buffett reinvest dividends?

Berkshire Hathaway gets a huge amount ofdividendincome from its investment holdings.Reinvesting in thestock that paid the dividend is oneoption, butBuffett can also move in different directions tochoose aninvestment with better potential returns when such aninvestment isavailable.

Williemae Itzigsohn

Reviewer

Is dividend an income?

When a company gives you a share of its profits, itisconsidered differently than ordinary income.Dividendincome refers to any distribution of a companyearningsto shareholders from stocks or mutual funds youown.

Gilmara Hariri

Reviewer

Do savings accounts pay dividends?

Dividends are similar to interest. It'simportantto remember most credit unions call the money it pays youforkeeping your money on deposit at the credit unionadividend. It's important to remember that notallaccounts pay dividends or interest. But you may notknowthat your money can work for you–everyday.

Shaniqua Angoitia

Reviewer

How much money do dividends pay?

In the United States, companies usuallypaydividends quarterly, though some pay monthlyorsemi-annually. A dividend is paid per share of stock—if you own 30 shares in a company and that company pays $2inannual dividends, you will receive $60peryear.

Co-Authored By:

EveryThingWhat Staff Editor

6

10th February, 2020

17

85% of readers found this page helpful.

4.2/5

Click a star to add your vote

Similar Asks
Trending