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In the stock dividend section, the article says:
I don't see why this is so. Imagine a company making a profit, and using it to buy some of its stocks on the stock market, and to give those stocks as dividend. This can drive the stock price higher, not lower! Or am I missing something? Nyh 09:39, 23 April 2007 (UTC)
From researching, it looks like dividends are different for common stock and preferred stock. It would be nice if someone who is knowledgeable about it, not me, could add it to the article. -- Kjkolb 11:06, 19 December 2005 (UTC)
anyone know what the term deemed dividend is? and how it is different from a standard dividend?
Answer: There is no actual cash involved in a 'deemed' dividend. The company pretends it has sent you the money. And then pretends that you used the cash to buy more shares of the company, which are issued from its treasury. Your broker's statement will show an increase in the number of shares you own. This method is frequently used to 'distribute' capital gains realized in the company that can be distributed tax-free in some countries.
Are dividends usually paid monthly ? Annually ? What percentage of share price are typical dividends ? Of S&P500 ? Thanks.
I am not sure about the tenor (or title) of the sections "Shareholders like dividends because..." and "Reasons companies don't pay dividends". Apart from being not particularly encyclopediaic, (and a lot of it is POV, like the Graham / Dodd analysis) they largely oversimplify the issues (and to fully discuss those issues would be almost impossible). For example, in the UK, companies tend to declare dividends as little as possible, but often use profits to redeem shares to accelerate the growth in capital value of the shares, as capital gains are more tax efficient than income. I don't disagree with everything in their, but the language and titles could use moderating. Legis 07:43, 13 October 2006 (UTC)
This article does not mention the sort of dividends (excess profits) distributed to policyholders by mutual insurance companies. Should it? Or should there be separate article for the insurance type of dividends? —The preceding unsigned comment was added by Dozen ( talk • contribs) 18:44, 8 January 2007 (UTC).
is dividend payout ratio = dividend/Net Income or = divident/retained earning ?? it seems that the former is the definition. Then if a specific year, there is no enough net income, but dividend is payout since there is a large retained earning. how to calculate the payout ratio? Jackzhp 22:41, 23 April 2007 (UTC)
If I know the dividend a share paid & the total value of dividends paid, how do I calculate the number of shares the dividend was paid on? Trekphiler 23:53, 17 August 2007 (UTC)
I'm not entirely certain if this is the right place to mention this (feel free to remove my comment if it is not), but the simple english wikipedia page on dividends is almost entirely empty - anyone here with a firm enough grasp on the topic willing to work on it? 206.107.108.225 ( talk) 15:05, 11 January 2008 (UTC)
Experienced editor BirgitteSB called by this article and tagged it as needing cleanup. I replaced her banner with a couple of specific ones, but I thought I ought to note that as we continue to edit it, we should keep a general eye on the Manual of style section headings and overall style can probably be improved and better match the house style. -- Hroðulf (or Hrothulf) ( Talk) 20:42, 23 June 2008 (UTC)
I would like to see another "see also" article entitled "Accounting for Dividends". It's obvious I'm not a writer, but can someone please take this and do it right? Thanks. Dave
Accounting for Dividends
A corporation issuing a dividend is like an Owner withdrawing from his Equity account. 1) Write the check(s) to the owner(s).
Debit the Owner Equity account. Credit Cash, the Asset account. Note: The withdrawal must be shown in the Equity section of the statements.
An immediate cash dividend: 1) Write the checks to the stockholders.
Debit Retained Earnings, the Equity account. Credit Cash. Note: The dividend must be shown in the Equity section of the statements: Beginning Retained Earnings $nn.nn Income $nn.nn Dividend paid $nn.nn Ending Retained Earnings $nn.nn
A deferred dividend: 1) Upon declaring the dividend:
Debit Retained Earnings. Credit Dividends Payable, a Liability account. Note: the statements at this point would show the change in Retained Earnings.
2) Upon paying the dividend:
Debit Dividends Payable. Credit Cash. Note: this clears the Dividends Payable account.
A cash dividend to be kept on the books: 1) Upon paying the dividend:
Debit Dividends Paid, a separate Equity account offsetting Retained Earnings. Credit Cash. Note: the statements would show the dividends in the Equity section of the statements.
2) To remove some or all of the Dividends Paid from the books,
Debit Retained Earnings Credit Dividends Paid Note: Removal of the Dividends Paid account has no effect other than those dividends would no longer appear in the Equity section of the statements.
A deferred dividend to be kept on the books: 1) Upon declaring the dividend:
Debit Dividends Declared, an Equity account offsetting Retained Earnings. Credit Dividends Payable, a Liability account. Note: the statements at this point would show the change in Retained Earnings.
2) Upon paying the dividend:
Debit Dividends Payable. Credit Cash. Note: this clears the Dividends Payable account. Debit Dividends Paid, another Equity account offsetting Retained Earnings. Credit Dividends Declared. Note: this clears the Dividends Declared account.
3) To remove some or all of the Dividends Paid from the books,
Debit Retained Earnings Credit Dividends Paid Note: Removal of the Dividends Paid account has no effect other than those dividends would no longer appear in the Equity section of the statements.
(Labeling an account simply "Dividends" is not helpful to understanding the procedure.) Dave C ( talk) 21:41, 30 November 2012 (UTC)
What is the point of confusing people by comparing a stock dividend, to a stock split, when some stock dividends do not split, but increase. A stock split does not add to market capitalization, but a stock dividend can. In every case when a stock dividend adds to capital, it cannot be a stock split.
A stock split can be delivered as a stock dividend, but the definition of a stock dividend need not contain a stock split. -oo0(GoldTrader)0oo- ( talk) 22:00, 25 July 2013 (UTC)