SeekingAlpha  3 hrs ago  Comment 
ByAbba's Aces: It's that time of year again…The summer solstice has passed, some schools are about to begin their fall semester, and most importantly, football season is upon us! A lot has happened in 2014; we saw an emerging market crisis in...
SeekingAlpha  Jul 19  Comment 
By Double Dividend Stocks: Looking for high yield dividend growth? In our recent articles, we've covered several relatively new LP's, which have good prospects for sustaining and growing their distributions. We just added another relatively new...
SeekingAlpha  Jul 19  Comment 
By John Dowdee: As a retiree seeking income, I love dividends and I recently wrote an article on how to choose the best dividend Exchange Traded Funds (ETFs). However, some Closed End Funds (CEFs) also focus on dividends, and CEFs typically have...
SeekingAlpha  Jul 19  Comment 
By Bob Wells: I am pleased to present my Second Quarter 2014 portfolio review. This review helps clarify one investor's approach to dividend growth investing. It should not be read that I am in any way suggesting it is the single best approach to...
StreetInsider.com  Jul 18  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/EXCO+Resources+%28XCO%29+Amends+Credit+Pact%2C+Can+Increase+Dividend+to+%2475M+Per+Year/9672934.html for the full story.
Motley Fool  Jul 18  Comment 
This rent-to-own specialist has grown its payout by 283% in just four years and is valued at just 10 times future profit projections.
DailyFinance  Jul 17  Comment 
RED DEER, ALBERTA -- (Marketwired) -- 07/17/14 -- Gamehost Inc. ('Gamehost', the 'Company') (TSX: GH) Gamehost has declared a cash dividend for the month of July 2014 of $0.0733 (CDN$) per common share. The dividend will be paid on August 15,...
SeekingAlpha  Jul 17  Comment 
By David Fish: In compiling the Dividend Champions list (found here) I get to see which companies are nearing the anniversaries of their previous dividend increases. Since most of these firms raise their payout about the same time every year, I...
SeekingAlpha  Jul 17  Comment 
By Unconventional Capital Wisdom: The current low interest rate environment has led many investors to stretch for yield in any place they can find it. Many think that anything is better than treasuries and bonds; inflation could easily outperform...
newratings.com  Jul 17  Comment 
EL SEGUNDO (dpa-AFX) - Toy maker Mattel, Inc. (MAT) reported Thursday a sharp decline in second-quarter profit, mainly as net sales were hurt by weak performance by all brands, except American Girl Brands. Earnings per share and sales missed Wall...


Dividends are payments made by a company to its shareholders. When a company earns a profit, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders of the company as a dividend. Paying dividends is not an expense; rather, it is the division of an asset among shareholders. Many companies retain a portion of their earnings and pay the remainder as a dividend. Publicly-traded companies usually pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a special dividend to distinguish it from a regular one.


The profits of a company can either be reinvested in the business or paid to its shareholders as a dividend. The frequency of these varies by country. In the United States, dividends of publicly-traded companies are usually declared quarterly by the board of directors. In some other countries dividends are paid biannually, as an interim dividend shortly after the company announces its interim results and a final dividend typically following its annual general meeting. In other countries, the board of directors will propose the payment of a dividend to shareholders at the annual meeting who will then vote on the proposal.

In the United States, a decision regarding the amount and frequency of dividends is solely at the discretion of the board of directors). Shareholders are explicitly forbidden from introducing shareholder resolutions involving specific amounts of dividends (SEC Form 8-A [3])

Where a company makes a loss during a year, it may opt to continue paying dividends from the retained earnings from previous years or to suspend the dividend. Where a company receives a non-recurring gain, e.g. from the sale of some assets, and has no plans to reinvest the proceeds the money is often returned to shareholders in the form of a special dividend. This type of dividend is often larger than usual and occurs outside of the normal dividend distribution schedule.


Dividends must be "declared" (approved) by a company’s Board of Directors each time they are paid. There are four important dates to remember regarding dividends. These are discussed in detail with examples at the Securities and Exchange Commission site [1]

Declaration date

The declaration date is the day the Board of Directors announces its intention to pay a dividend. On this day, a liability is created and the company records that liability on its books; it now owes the money to the stockholders. On the declaration date, the Board will also announce a date of record and a payment date.

Ex-dividend date

The ex-dividend date is the day after which all shares bought and sold no longer come attached with the right to be paid the most recently declared dividend. This is an important date for any company that has many stockholders, including those that trade on exchanges, as it makes reconciliation of who is to be paid the dividend easier. Prior to this date, the stock is said to become dividend ('with dividend'): existing holders of the stock and anyone who buys it will receive the dividend, whereas any holders selling the stock lose their right to the dividend. On and after this date the stock becomes ex dividend: existing holders of the stock will receive the dividend even if they now sell the stock, whereas anyone who now buys the stock now will not receive the dividend.

It is relatively common for a stock's price to decrease on the ex-dividend date by an amount roughly equal to the dividend paid. This reflects the decrease in the company's assets resulting from the declaration of the dividend. The company does not take any explicit action to adjust its stock price; in an efficient market, buyers and sellers will automatically price this in.

Record date

Shareholders who properly registered their ownership on or before the date of record will receive the dividend. Shareholders who are not registered as of this date will not receive the dividend. Registration in most countries is essentially automatic for shares purchased before the ex-dividend date.

Payment date

The payment date is the day when the dividend cheques will actually be mailed to the shareholders of a company or credited to brokerage accounts.


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