These are rare and can occur for a variety of reasons such as a major litigation win, the sale of a business, or liquidation of an investment.They can take the form of cash, stock, or property dividends.
Clear off your desk, grab a pen and notepad, and pour a cup of coffee (or tea if you prefer).
You're about to embark on a journey that will put you years ahead of other new investors on understanding dividends and the important role they play in your investment portfolio.
It was literally said on Wall Street, “the purpose of a company is to pay dividends”.
Today, the investor’s view is a bit more refined; it could be stated, instead, as, “the purpose of a company is to increase my wealth.” Indeed, today’s investor looks to dividends and capital gains as a source of increase.
Property dividends are recorded at market value on the declaration date.
In addition to regular dividends, there are times a company may pay a special one-time dividend.By starting here, you'll learn to avoid tax traps such as buying dividend stocks between the ex-dividend date and the distribution date, effectively forcing you to pay other investors' income taxes!You'll also learn why some companies refuse to pay dividends while others pay substantially more, how to calculate dividend yield, and how to use dividend payout ratios to estimate the maximum sustainable growth rate.A property dividend is when a company distributes property to shareholders instead of cash or stock.Property dividends can literally take the form of railroad cars, cocoa beans, pencils, gold, silver, salad dressing or any other item with tangible value.Before a company can pay cash dividends to shareholders, it has to go through a legal checklist that includes declaring a declaration date, ex-dividend date, date of record, and distribution date.