RPM International Inc.’s Post

"Common Stocks & Preferred stocks" Both (preferred stock and common stock) represent ownership in a company, but they have some key differences that affect your rights and potential returns as an investor. Here's a breakdown: 1) Dividends Priority: If BOD declared dividends, common stockholders will receive dividends "After" preferred. 2) Claims on assets in liquidation: in liquidation case (Bankruptcy), common stockholders claims were satisfied as a residual "After" satisfying all other claims. 3) Preemptive rights: Existing common stockholders have the opportunity to buy a proportionate number of new shares before they are offered to the public. this helps existing shareholders avoid dilution of their ownership stake. *But on the other hands* - common stockholders have voting rights and control but preferred stockholders haven't these rights. So, which one is better? #Financial_Management #CMA

Which one of the following items most likely increases the earnings per share (EPS) of a corporation? A. Purchase of treasury stock. B. Payment of a stock dividend. C. A reduction in the amount of cash dividends paid to common shareholders. D. Declaration of a stock split.

Cumulative preference shares represent a type of preferred stock where any unpaid dividends accumulate over time and must be paid out to shareholders before common stockholders can receive dividends. If the company fails to pay dividends in a particular period, the unpaid amount carries over to future periods until it is settled. This feature ensures that preferred shareholders receive their due dividends, providing them with a higher level of security compared to common shareholders in times of financial difficulty for the company.

Yield on Cost is a measure of dividend yield calculated by dividing a stock's current dividend by the price initially paid for that stock. It's an important metric for dividend growth portfolios because as dividends grow, so does the yield on cost. Growing dividends take greater advantage of dividend reinvestment and the power of compounding. You can check out our Yield on Cost calculator here: https://lnkd.in/gdi8Es59

Dividend Yield Dividend yield shows the annual dividend income earned by an investor as a percentage of the current market price of a stock. It is calculated by dividing the annual dividend per share by the current market price per share and then multiplying the result by 100. A higher dividend yield number shows that the company is paying a high amount of dividend compared to its stock price.

Today part 3 of my series focuses on the Statement of Stockholders Equity which is a deeper dive into the YOY changes in the equity accounts on the Balance Sheet. Items announced on this statement are changes such as detail on stock buy backs, the types of dividends paid out, and changes in other equity accounts such as treasury stock or common stock. This is a requirement for publicly traded companies to insert this into the annual report and other SEC filings. Most FP&A people will not build one but for Cash budgeting and re-forecasting it is very important to understand this statement. Also, FP&A people might insert into Year-End packets with for meetings with executives and board members. In the picture above is a very basic Statement of Stockholders equity where the only change was retained earnings which was contributed by a $171 Million Dollar increase in Net Income.

Preferred Stock The term "stock" refers to ownership or equity in a firm. There are two types of equity—common stock and preferred stock. Preferred stockholders have a higher claim to dividends or asset distribution than common stockholders. The details of each preferred stock depend on the issue.

Word of the day Dividend Yield Dividend yield shows the annual dividend income earned by an investor as a percentage of the current market price of a stock. It is calculated by dividing the annual dividend per share by the current market price per share and then multiplying the result by 100. A higher dividend yield number shows that the company is paying a high amount of dividend compared to its stock price.

There are significant dates associated with stock dividends that investors need to be aware of to ensure they do not miss out on their dividend payments. Learn what these important dates are in this ACap blog post: https://hubs.la/Q01_S8130

Global Stocks Dividends update Realty Income The company has announced that it has declared an increase in the company's common stock monthly cash dividend to $0.2565 per share from $0.2560 per share. The dividend is payable on January 12, 2024, to stockholders of record as of January 2, 2024. This is the 123rd dividend increase since Realty Income's listing on the NYSE in 1994. The ex-dividend date for January's dividend is December 29, 2023. The new monthly dividend represents an annualized dividend amount of $3.078 per share as compared to the prior annualized dividend amount of $3.072 per share. #globalstocks #investing #dividendgrowthinvesting