Dividend

dividendsstock dividendcash dividenddistributionsdividend incomepatronage dividendShare dividendstock dividendsdistribution ''in speciedistributions of profits
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.wikipedia
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Share repurchase

stock buybackshare buybackbuy back
Distribution to shareholders may be in cash (usually a deposit into a bank account) or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or share repurchase.
It represents a more flexible way (relative to dividends) of returning money to shareholders.

Dividend reinvestment plan

Dividend Reinvestment PlansShare Purchase Plandirect purchase program
Distribution to shareholders may be in cash (usually a deposit into a bank account) or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or share repurchase.
The investor does not receive quarterly dividends directly as cash; instead, the investor's dividends are directly reinvested in the underlying equity.

Retained earnings

ploughed backaccumulated deficitearnings
When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business (called retained earnings) and pay a proportion of the profit as a dividend to shareholders.
Any part of a credit balance in the account can be capitalised, by the issue of bonus shares, and the balance is available for distribution of dividends to shareholders, and the residue is carried forward into the next period.

Special dividend

special one-time payout
Public 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 the fixed schedule dividends.
A special dividend is a payment made by a company to its shareholders, that the company declares to be separate from the typical recurring dividend cycle, if any, for the company.

Dutch East India Company

VOCDutch East Indies CompanyDutch
In financial history of the world, the Dutch East India Company (VOC) was the first recorded (public) company ever to pay regular dividends.
By 1669, the VOC was the richest private company the world had ever seen, with over 150 merchant ships, 40 warships, 50,000 employees, a private army of 10,000 soldiers, and a dividend payment of 40% on the original investment.

Public company

Publicpublicly tradedpublicly traded company
Public 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 the fixed schedule dividends.

Cooperative

co-operativeco-opcooperatives
Cooperatives, on the other hand, allocate dividends according to members' activity, so their dividends are often considered to be a pre-tax expense.
Cooperatives often share their earnings with the membership as a dividends, which are divided among the members according to their participation in the enterprise, such as patronage, instead of according to the value of their capital shareholdings (as is done by a joint stock company).

Shareholder

shareholdersstockholderstockholders
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.

Ex-dividend date

ex-dividendrecord date
Ex-dividend date — the day on which shares bought and sold no longer come attached with the right to be paid the most recently declared dividend.
The ex-dividend date, also known as the reinvestment date, is an investment term involving the timing of payment of dividends on stocks of corporations, income trusts, and other financial holdings, both publicly and privately held.

Corporate tax

corporation taxcorporate income taxbusiness tax
Most countries impose a corporate tax on the profits made by a company.
Countries may tax corporations on its net profit and may also tax shareholders when the corporation pays a dividend.

Profit (accounting)

profitprofitsprofitability
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.

Dividend tax

taxes on dividendstax on dividendsDividend
A dividend tax is the tax imposed by a tax authority on dividends received by shareholders (stockholders) of a company.

Board of directors

Board of Trusteesdirectorboard
A dividend that is declared must be approved by a company's board of directors before it is paid.
In this capacity they establish policies and make decisions on issues such as whether there is dividend and how much it is, stock options distributed to employees, and the hiring/firing and compensation of upper management.

Double taxation

double-taxationdouble taxdouble tax treatment
The shareholders who are able to use them, apply these credits against their income tax bills at a rate of a dollar per credit, thereby effectively eliminating the double taxation of company profits.
For example, in some jurisdictions, corporate profits are taxed twice, once when earned by the corporation and again when the profits are distributed to shareholders as a dividend or other distribution.

Dividend imputation

franking creditfranking creditsimputation
Australia and New Zealand have a dividend imputation system, wherein companies can attach franking credits or imputation credits to dividends.
The Australian tax system allows companies to determine the proportion of franking credits to attach to the dividends paid.

Real estate investment trust

REITREITsreal estate investment trusts
Certain types of specialized investment companies (such as a REIT in the U.S.) allow the shareholder to partially or fully avoid double taxation of dividends. In real estate investment trusts and royalty trusts, the distributions paid often will be consistently greater than the company earnings.
dividends paid by REITs look less attractive when compared to bonds that have

Interest

simple interestrate of interestinterest rates
For example, a credit union will pay a dividend to represent interest on a saver's deposit.
It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit or reserve, but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs.

Stock split

splitsplitsstock splits
Nothing tangible will be gained if the stock is split because the total number of shares increases, lowering the price of each share, without changing the market capitalization, or total value, of the shares held.
When a stock splits, many charts show it similarly to a dividend payout and therefore do not show a dramatic dip in price.

Ordinary income

ordinary gainordinary federal income tax
If there is an increase of value of stock, and a shareholder chooses to sell the stock, the shareholder will pay a tax on capital gains (often taxed at a lower rate than ordinary income).
Ordinary income can consist of income from wages, salaries, tips, commissions, bonuses, and other types of compensation from employment, interest, dividends, or net income from a sole proprietorship, partnership or LLC.

Royalty trust

Canroyenergy trustroyalty trust (CANROY)
In real estate investment trusts and royalty trusts, the distributions paid often will be consistently greater than the company earnings.
However, unlike most corporations, its profits are not taxed at the corporate level provided a certain high percentage (e.g. 90%) of profits are distributed to shareholders as dividends.

Free cash flow

Free cash flow to firmfree cash-flowTotal cash flow
Hence, a more liquidity-driven way to determine the dividend’s safety is to replace earnings by free cash flow.

Book closure

Book closure date
Book closure date —when a company announces a dividend, it will also announce a date on which the company will ideally temporarily close its books for fresh transfers of stock, which is also usually the record date.
Book Closure date (also known as the record date or ex-dividend date) is the date that a shareholder must hold the stock to receive certain benefits (like share bonus issue, splits and dividend payments).

Mutual insurance

mutualmutual insurance companymutual insurer
In the case of mutual insurance, for example, in the United States, a distribution of profits to holders of participating life policies is called a dividend.
Any profits earned by a mutual insurance company are either retained within the company or rebated to policyholders in the form of dividend distributions or reduced future premiums.

Credit union

credit unionscaisse populairefederal credit union
For example, a credit union will pay a dividend to represent interest on a saver's deposit.
According to the World Council of Credit Unions (WOCCU), a credit union's revenues (from loans and investments) must exceed its operating expenses and dividends (interest paid on deposits) in order to maintain capital and solvency.

Mutual organization

Mutualmutual companymutual society
The distribution of profits by other forms of mutual organization also varies from that of joint-stock companies, though may not take the form of a dividend.
A mutual is therefore owned by, and run for the benefit of, its members - it has no external shareholders to pay in the form of dividends, and as such does not usually seek to maximize and make large profits or capital gains.