文档介绍：Dividends and Other Payouts
Key Concepts and Skills
Understand dividend types and how they are paid
Understand the issues surrounding dividend policy decisions
Understand why share repurchases are an alternative to dividends
Understand the difference between cash and stock dividends
Chapter Outline
Different Types of Dividends
Standard Method of Cash Dividend Payment
The Benchmark Case: An Illustration of the Irrelevance of Dividend Policy
Repurchase of Stock
Personal Taxes and Dividends
Real-World Factors Favoring a High Dividend Policy
The Clientele Effect: A Resolution of Real-World Factors?
What We Know and Do Not Know about Dividend Policy
Stock Dividends and Stock Splits
Different Types of Dividends
panies pay a regular cash dividend.
panies often pay quarterly.
Sometimes firms will pay an extra cash dividend.
The extreme case would be a liquidating dividend.
Companies will often declare stock dividends.
No cash leaves the firm.
The firm increases the number of shares outstanding.
panies declare a dividend in kind.
Wrigley’s Gum sends a box of chewing gum.
Dundee Crematoria offers shareholders discounted cremations.
Standard Method of Cash Dividend
Record Date – Date on pany determines existing shareholders.
Ex-Dividend Date - Date that determines whether a stockholder is entitled to a dividend payment; anyone holding stock immediately before this date is entitled to a dividend.
Cash Dividend - Payment of cash by the firm to its shareholders.
Procedure for Cash Dividend
25 Oct.
1 Nov.
2 Nov.
5 Nov.
7 Dec.
Declaration Date
Cum-dividend Date
Ex-dividend Date
Record Date
Payment Date
…
Declaration Date: The Board of Directors declares a payment of dividends.
Cum-Dividend Date: Buyer of stock still receives the dividend.
Ex-Dividend Date: Seller of the stock retains the dividend.
Record Date: The corporation prepares a list of all individuals believed to be stockholders as of 5 Novemb