The board of directors can choose to issue dividends over various timeframes and payout rates. It is also common for a company to issue special dividends either individually or simultaneously with a scheduled dividend.
Investors often view the company’s dividend by its dividend yield which measures the dividend in terms of a percent of the current market price.
Start-ups and other high-growth companies such as those in the technology or biotechnology sectors rarely offer dividends.
These companies often report losses in their early years and any profits are usually reinvested to help sustain higher-than-average growth and expansion.
Larger, established companies with more predictable profits are often the best dividend payers.
These companies tend to issue regular dividends as they seek to maximize shareholder wealth in ways aside from supernormal growth.
Paid after satisfying all corporate debts, the liquidating dividend is meant to provide a return on investment.
Net profits can be allocated to shareholders via a dividend, or kept within the company as retained earnings.
A company may also choose to use net profits to repurchase their own shares in the open market in a share buyback.
A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders.
Dividends can be issued as cash payments, as shares of stock, or other property.Also a distribution of assets from a company that is going out of business.