Whenever a person would become a stockholder of a company, depending on what types of stocks he will be possessing, he will be entitled to dividends. Of course there are different kinds of dividends that one may receive based on his agreement with the company. Just to give one an idea, here are several types of dividend payments that he would have to take note of.
Now the first and most common kind would be cash dividends which are often given to those with common shares. Now if the directors of a company would want to give out cash dividends, they would first declare that they will be giving these bonuses and how much. After that, there will also be a date of payment which will be the date that the investor will actually receive it.
Another kind would be stock dividends which are the types that are not in the form of cash but in the form of shares of stock. Just like the cash dividends, there would be a declaration date as well as a date of payment wherein one would get his dividends. Now one very important thing to take note would be that only those who have common shares may avail of stock dividends.
Now one very good example that one can use would be when he would invest in the stock market. Now whenever one would invest in a public listed company, he would also be entitled to bonuses. Now instead of receiving cash, he would be receiving for example, twenty five percent or basically the agreed percentage of the stocks that he invested in.
Now other than that, there would also be the property dividends. Instead of monetary kinds, the board of directors may actually decide to give dividends in the form of property or assets instead. When they would give an investor these dividends, they will be recording it in its fair market value or simply market value and then if it appreciates, the investor will benefit.
The fourth on the list are the scrip dividends. Now in the event that the company does not have that much cash on hand, they may actually offer a promissory note to pay dividends. Basically they are promising that they will pay an investor his dividends but at a later date.
The last kind would be liquidating dividends which is wherein the board would return the principal amount invested by a shareholder in the form of dividends. This would usually happen if the business is already ready to close down and would still want to keep good ties with its investors. It is called liquidating dividends because the business is already in the process of liquidation.
So basically, these are the different kinds of dividends that one may avail of. Now if one would want to go deeper into this subject, he may actually go for a seminar on it. Many organizations, especially in Florida, would actually offer these seminars.
Now the first and most common kind would be cash dividends which are often given to those with common shares. Now if the directors of a company would want to give out cash dividends, they would first declare that they will be giving these bonuses and how much. After that, there will also be a date of payment which will be the date that the investor will actually receive it.
Another kind would be stock dividends which are the types that are not in the form of cash but in the form of shares of stock. Just like the cash dividends, there would be a declaration date as well as a date of payment wherein one would get his dividends. Now one very important thing to take note would be that only those who have common shares may avail of stock dividends.
Now one very good example that one can use would be when he would invest in the stock market. Now whenever one would invest in a public listed company, he would also be entitled to bonuses. Now instead of receiving cash, he would be receiving for example, twenty five percent or basically the agreed percentage of the stocks that he invested in.
Now other than that, there would also be the property dividends. Instead of monetary kinds, the board of directors may actually decide to give dividends in the form of property or assets instead. When they would give an investor these dividends, they will be recording it in its fair market value or simply market value and then if it appreciates, the investor will benefit.
The fourth on the list are the scrip dividends. Now in the event that the company does not have that much cash on hand, they may actually offer a promissory note to pay dividends. Basically they are promising that they will pay an investor his dividends but at a later date.
The last kind would be liquidating dividends which is wherein the board would return the principal amount invested by a shareholder in the form of dividends. This would usually happen if the business is already ready to close down and would still want to keep good ties with its investors. It is called liquidating dividends because the business is already in the process of liquidation.
So basically, these are the different kinds of dividends that one may avail of. Now if one would want to go deeper into this subject, he may actually go for a seminar on it. Many organizations, especially in Florida, would actually offer these seminars.
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If you would to know more about the types of dividend payments available, check out this link to The Declaration of Dependence Dividends in the Twenty-First Century. To order the book, come to http://financial-economics.org now.
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