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Dividend payments are certainly not guaranteed as we saw in 2009, when hundreds of companies reduced and even eliminated their dividends to investors. Dividends come from net income of a company less...No, corporations are not required to pay dividends on their stocks. However, some mutual funds are designed to only invest in dividend-paying stocks, so some corporations pay a miniscule dividend in...Yes. Equity consists of paid-in capital (received from the shareholders when they bought their shares) and retained earnings. Retained earnings are all past earnings that the company made and did not.

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Q: What is payment of dividend?
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Related questions

What are dividend checks?

an order of payment (such as a check payable to a shareholder) in which a dividend is paid

The dividend quote in paper is based upon?

The most recent dividend payment

A payment to stockholders is called?


Which financials statement does dividends go on?

Indiana unclaimed has a dividend payment to me. How do I get a dividend statement sent to me?

What is the dividend for alcatel-lucent?

On 2/10/2011 the Board recommended no dividend payment for 2010.

What is a cash payment from a corporation's profit?


Does a dividend payment increase cash flow?

If we pay Dividend the cash flow will decrease as money will go out

Is payment of dividend part of financing activities?

Yes it is

What are the dividend payment methods?

There are normally two ways by which dividends can be paid. You can have a check mailed to you, or you can have the dividend deposited directly into your account.

What accounts record the payment of the interim dividend?

surinder's accounts

3 situations in which a cash payment would not involve recognition of an expense?

Purchase of a fixed asset. Payment of a liability, loan or other debt. Payment of a dividend.

What is the difference between interest and a dividend?

Interest is a payment on debt (such as bonds or bank notes). A dividend is a distribution of earnings to the owners of a firm.

Is a payment of cash dividend reported in the statement of cash flow?

Yes. A cash dividend is considered a cash outflow for financing activities.

What is a payment made by a company to its shareholders called?

A payment made by a company to its shareholders is called a dividend.

What is special cum dividend?

After a share has been marked ex-dividend, and before the payment date, shares can be bought with the dividend if you can find a counterparty who will sell them to you in this manner. Equally shares can be bought and sold ahead of the ex-dividend date, "Special Ex" ie without the dividend.

What are the difference between preference share and ordinary equity?

preference share in which you received dividend first and in ordinary share you received dividend after payment to pref.shareholder

How are dividends listed for stocks in the newspaper?

Dividend (Div). The rate of annual dividend is shown; it is generally an estimate based on the previous quarterly or semiannual payment.

A payment made by a company to a stockholder to share in the company's profits is known as?

A dividend.

The statement of cash flows would disclose the payment of a dividend?

nowhere on the statement

Is dividend pay on net profit or profit after tax?

Tax is the first priority of payment that's why dividend is paid on income after tax basis which is dividable to shareholders.

What is the effect on shareholders wealth if the company didn't pay the dividend?

Non payment of dividend is to be differentiated from non declaration of dividend. Some companies, even though in profits, prefer to retain the profit in the business than disbursing dividends. This in facts maximises the shareholders wealth, due to the effect of compounding. Otherwise, if non payment of dividend is due to absence of sufficient profits, then the shareholders wealth diminishes.

How do you post dividends?

There are three important dates when dealing with dividends. When the Board of Directors "declares" the dividend, the business has a legal obligation to pay the dividend to the shareholders. The posting on this date is Dr. Dividends Cr. Dividends Payable - to record dividend declared by the Board of Directors The next date is the "record" date. This determines who gets the dividends. Those that own the shares on the record date will receive the dividend. No posting is required on the record date. The final date is the "payment" date. This is the date the business writes the cheques to the holders of the shares on the record date. Dr. Dividends Payable Cr. Cash - to record payment of the dividend When the Board of Directors announces the dividend, it will state the record date and payment date.

What is meant with dividend dates in finances?

There are 3 important dates to consider with dividends; the declaration date- when a board declares it's intention to pay, the date of record - the date from which stockholders are entitled to the payment, the payment date - is the date the dividend will actually be given to shareholders.

What are the 3 dates and their entries that are associated with dividends.?

In the United States, the three dates that are significant for both paying and accounting for any given cash dividend are: 1) Declaration date: Dividends are not payable unless and until the corporation's Board of Directors declares that a dividend will be paid. The date on which they promise to pay a dividend is called the declaration date, and that is the date on which the company incurs an obligation to pay the dividend. Generally on that date the Board will specify the two other important dates: the ex-dividend date, and the payment date. On the day a dividend is declared, the accounting entries are Debit the Retained Earnings account and credit the Dividends Payable liability account for the total amount of the dividend. 2) Ex-dividend date (or "date of record"): The ex-dividend date is the cutoff date used to identify the particular persons to whom an upcoming dividend will be paid. The shareholders listed on the corporation's records as the owners of shares at the ex-dividend date are the ones who will receive payment of the upcoming dividend, whether or not they still own the shares on the date the dividend is paid. There is no accounting entry related to the ex-dividend date. 3) Payment date: This is the date on which the cash dividend is actually paid out to the shareholders. When the dividend is paid, the accounting entries are: Debit the Dividends Payable account and credit the Cash account for the total amount of the dividend. This eliminates the liablility that was recorded when the dividend was first declared, and reflects the funds going out of the corporation's cash when the dividend is paid.And so, why are we reading this?

What is the most likely prediction after a firm reduces its regular dividend payment?

Earnings are expected to decline.