Vipin Behl’s Post

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.

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. #dividendyield #investors

Why & How declaration of DIVIDEND affect share price*********** After the declaration of a stock dividend, the stock's price often increases; however, because a stock dividend increases the number of shares outstanding while the value of the company remains stable, it dilutes the book value per common share, and the stock price is reduced accordingly.

Dividend yield is a financial metric that indicates the annual return on investment (ROI) an investor receives from owning a particular stock, expressed as a percentage. It is calculated by dividing the annual dividend per share by the current price per share of the stock. Essentially, dividend yield shows how much income an investor can expect to receive from owning a stock relative to its current market price. A higher dividend yield suggests a higher return on investment from dividends, while a lower dividend yield indicates a lower return. #stockmarket #dividends #dividendyield #shareprice

Highest-ever dividend payout! THIS midcap stock declares interim dividend, stock split – Check record date, ratio and other details

Question: Company A has declared a 10% stock dividend on its 40,000 outstanding shares(par value USD.1 & Issued value is 20), with the payment date being immediate. How should the company account for this stock dividend in its financial statements? Options: A. Make a cash payment to shareholders. B. Adjust retained earnings and increase common stock and additional paid-in capital (APIC). C. Record the stock dividend as an expense on the income statement.

There's a lot of confusion about this... I’ve noticed a lot of advisors on social media claim that a stock's price goes down when you receive a dividend and that it is a "forced" taxable event. And that the stock price declines after a dividend is paid because there is less cash on the company's balance sheet. Therefore, you shouldn't buy dividend paying stocks. But that's not really true. ❌ While it is true that the price of a stock drops when a dividend is paid... The reason a stock's price changes when the dividend is paid, is because there is a period of time that the stock trades without the buyer of the stock being entitled to the dividend. If you buy the stock after what's called the "ex-dividend" date you are 𝗻𝗼𝘁 going to receive the dividend. Since the stock is trading with no entitlement to the dividend after the ex-dividend date it's worth less, so it's price drops. Think about it...would you pay the same price for a rental property that wasn't paying rent vs. one that was? But a stock that pays consistent dividends means the business is profitable (because a dividend is simply a distribution of profits to shareholders) and it's share price likely goes up over time.

QUICK NOTE: Effect of stock dividend and stock split on holding. Both the above events result in no change in the shareholder's proportional ownership in the company. The shareholder has more shares but the same percentage of total shares outstanding.

dividend yield, which is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. A high dividend yield can indicate that a company is returning a significant portion of its earnings to shareholders in the form of dividends. Please note that dividend yields can vary over time and are influenced by factors such as changes in stock prices and dividend payouts.

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.