Stock dividend * Definition: * A corporate distribution to shareholders declared out of profits‚ at the discretion of the directors of the corporation‚ which is paid in the form of shares of stock‚ as opposed to money‚ and increases the number of shares. * A dividend paid as additional shares of stock rather than as cash. If dividends paid are in the form of cash‚ those dividends are taxable. When a company issues a stock dividend‚ rather than cash‚ there usually are not tax consequences
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Introduction A dividend is termed as a portion of a firm’s earnings that is returned to its shareholders. Dividends offer a further motif for investors to hold or even increase their investments. A lot of companies‚ mature or young‚ large or small‚ pay stable dividend. It is true that high dividend yield is important for current investors because it indicates‚ to some degree‚ a firm’s financial well being‚ but paying 100% of its earnings as dividend is not financially wise. Instead of paying dividends‚ fluid
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help management must decide on the form of the dividend distribution‚ generally as cash dividends or via a share buyback. Various factors may be taken into consideration: where shareholders must pay tax on dividends‚ firms may elect to retain earnings or to perform a stock buyback‚ in both cases increasing the value of shares outstanding. Alternatively‚ some companies will pay "dividends" from stock rather than in cash. The purpose of an optimal dividend policy should be to maximize shareholders’
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How accurate is the statement that “The dividend policy of a firm is irrelevant”. By Mr. George Ekegey Ekeha (MBA – Finance‚ MBA & BCom) (Lecturer in Corporate Finance & International Finance @ Regent University College of Science & Technology) Email: ekegey24ge@yahoo.co.uk March 2009 THIS PAPER IS PREPARED IN RESPONSE TO A RELEVANT QUESTION TO HELP STUDENTS TAKING CORPORATE FINANCE COURSE. No Part of This Thesis Is To Be Used For Any Purposes‚ Other Than Academic REFERENCE
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century. Obviously‚ the problem needs solutions. As one of them‚ some scholars claim that citizens of affluent countries are responsible in reducing poverty in poor countries. The most notable person among this group is Thomas Pogge. He proposes program called “The Global Resources Dividend” (GRD)‚ which is supposed to eradicate poverty in the world. Pogge builds up the program on principle claiming that each individual has “inalienable stake in all limited natural resources” (2001‚ p. 61‚ p. 66)
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15.3 Dividend Relevance Model 15.3.1 15.3.2 Walter Model Gordon’s Dividend Capitalization Model Dividend Decision 15.4 Dividend Irrelevance Theory: Miller and Modigliani Model 15.5 Stability of Dividends 15.6 Forms of Dividends 15.7 Stock Split 15.8 Summary Terminal Questions Answers to SAQs and TQs 15.1 Introduction Dividends are that portion of a firm’s net earnings paid to the shareholders. Preference shareholders are entitled to a fixed rate of dividend irrespective
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September 2004 Understanding the Demographic Dividend By John Ross A fresh reason for attending to fertility dynamics has emerged—the “demographic dividend.” As fertility rates fall during the demographic transition‚ if countries act wisely before and during the transition‚ a special window opens up for faster economic growth and human development. WHAT IS THE DEMOGRAPHIC DIVIDEND? Simply stated‚ the demographic dividend occurs when a falling birth rate changes the age distribution‚1 so
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CHAPTER 13 DIVIDEND POLICY L E A R N I N G LG1 LG2 LG3 Understand cash dividend payment procedures and the role of dividend reinvestment plans. Describe the residual theory of dividends and the key arguments with regard to dividend irrelevance and relevance. Discuss the key factors involved in formulating a dividend policy. G O A L S LG4 Review and evaluate the three basic types of dividend policies. LG5 Evaluate stock dividends from accounting‚ shareholder
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International Journal of Business‚ Economics and Law‚ Vol. 1 ISSN 2289-1552 2012 DETERMINANTS OF DIVIDEND POLICY: THE CASE OF VIETNAM Nguyen Thi Xuan Trang Accounting Department Da Nang University of Economics 71 Ngu Hanh Son Street‚ Ngu Hanh Son District‚ Da Nang City‚ Vietnam Email: trangatax@gmail.com ‚ Tel: (+84) 0 914 745 649 ABSTRACT There were several researchers who investigated dividend policy in developed countries like the USA (Chang and Rhee‚ 1990)‚ the UK (Al-Najjar and Hussainey
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REASONS FOR DIVIDENDS Dividend policy is likely to be set in the form of a goal rather than a rigid rule‚ even though a definite policy has the advantage of providing the investor‚ or potential investor‚ a clear basis for choice. Investors knowing the dividend policy of the alternative companies can choose the type of company that best fits their individual investment goals. This is desirable‚ because stockholders differ in the extent to which they prefer dividends rather than opportunities for
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