Dividends

About the name dividends The name comes from the arithmetic operation of contri scarceion: if a / b = c then a is the dividend, b the divisor, and c the quotient. In the United States, credit unions generally affair the experimental condition dividends to refer to rice beer payments they make to depositors. These are not dividends in the normal sense and are not taxed as such; they are just interest payments. Credit unions hollo them dividends since, as credit unions are owned by their members, interest payments are effectively payments to owners. In the United Kingdom, consumer co-operative societies use the term dividend for profit-sharing payments to their members. Un ilk joint stock friendship dividends, these payments are make in proportion to a members spending with the co-operative society, not the event of shares they hold in it. What are dividends? Dividends are just like a small reward a follow pays you for owning shares of its stock. The company takes a portion of its earnings, which it divides and distributes to shareholders. In general, a company that has a slow maturation vagabond pays high dividends. On the separate hand, a company with a high growth rate usually pays no dividends. Historically, large corporations and utility stocks have paying(a) regular dividends.

These companies usually have growth rates of less(prenominal) than 10% and slow stock price custody but have high cash flow. They can pay dividends to investors attracted to income. In contrast, large corporations such as Google and Cisco have growth rates around 30% and high stock appreciation but do not pay dividends. Instead, they reinvest the earnings into the company in order to make the business grow. What is dividend policy? in one case a company makes a profit, they must decide on what to do with those profits. They could continue to retain the profits within the company, or they could pay out the profits to the owners of the firm in the air of dividends. Once the company decides on whether to pay dividends, they... If you want to cleave a full essay, order it on our website: Orderessay

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