Legal Dictionary of Pakistan

Asset dividend

see dividend.

Dividend

A portion of a company's earnings or profits distributed pro rata to its shareholders, usu. in the form of cash or additional shares.

Dividenda

n. [fr. Latin dividere "to divide"] Hist. Something to be divided; an indenture.

Preferred dividend

A dividend paid to preferred shareholders, who are generally paid a fixed amount and take priority over common shareholders. property dividend. See asset dividend.

accrued dividend. See accumulated dividend under DIVIDEND. accrued expense. See EXPENSE.

accumulated dividend

A dividend that has been declared but not yet paid. - Also termed accrued dividend.

accumulative dividend

See cumulative dividend.

accumulative dividend.

See cumulative dividend under DIVIDEND.

actio de communi dividendo.

See DE COMMUNI DIVIDUNDO.

asset dividend

A dividend paid in the form of property, usu. the company's product, rather than in cash or stock. - Also termed property dividend.

bond dividend

A dividend in which a shareholder receives a bond instead of scrip, property, or money.

capital-gain dividend

A taxable payment to a mutual-fund shareholder. o The payment is the shareholder's proportional share of the net capital gains realized by securities sales from the mutual fund's portfolio. - Also termed capital-gain distribution.

cash dividend

See DIVIDEND.

consent dividend

A dividend that is not actually paid to the shareholders, but is taxed to the shareholders and increases the -basis in their stock investment. 0 A corporation declares a consent dividend to avoid or reduce an accumulated-earnings or personal-holdingcompany penalty tax.

constructive dividend

See DIVIDEND

cum dividend

With dividend. ( Stocks purchased cum dividend entitle the buyer to any pending declared dividends. Cf. Ex DIVIDEND.

cumulative dividend

A dividend that grows from year to year when not paid. 0 A cumulative dividend is usu. on preferred shares, and it must be paid in full before common shareholders may receive any dividend. If the corporation does not pay a dividend in a particular year or period, it is carried over to the next year or period and must be paid before the common shareholders receive any payment. - Also termed accumulative dividend. Cf. noncumulative dividend.

cumulative-to-the-extent-earned dividend

See DIVIDEND.

declaration of dividend

A company's setting aside of a portion of its earnings or profits for distribution to its shareholders. See DIVIDEND.

deferred dividend

A dividend that is declared, but is payable at a future date.

deficiency dividend

A dividend paid to reduce or avoid personal-holding-company tax in a prior year. disguised dividend See informal dividend.

disguised dividend

See informal dividend under DIVIDEND.

dividend addition

An amount added to the face value of a life-insurance policy and purchased by using a dividend as a single premium payment.

dividend date

See DIVIDEND DATE.

dividend income

See INCOME.

dividend preference

The right of a holder of preferred shares to receive a dividend before the company pays dividends to holders of common shares. See preferred stock under STOCK.

dividend yield

The current annual dividend divided by the market price per share.

dividend-credit rule

The principle that a corporate reserve fund amassed from unpaid dividends on preferred stock must be used to pay subsequent dividends on preferred stock before dividend payments on common stock. - Also termed cast-iron-pipe doctrine.

dividend-payout ratio

A profitability ratio computed by dividing annual dividends per share by earnings per share.

dividend-received deduction

A deduction allowed to a corporate shareholder for dividends received from a domestic corporation. IRC (26 USCA) §§ 243-247.

dividend-reinvestment plan

A companysponsored program that enables common shareholders to reinvest their dividends, plus additional voluntary payments, into shares of the entity's common stock, usu. with no sales charge, and sometimes at a discount from the stock's market price.

ex dividend

Without dividend. ( Shares are traded ex dividend when the seller, not the purchaser, is entitled to the next dividend payment because it will be made before the stock transfer is completed. The first day on which shares are traded ex dividend, the stock price will drop by an amount usu. approximating the amount of the dividend. - Abbr. XD.; X. Cf. CUM DIVIDEND.

ex-dividend date

The date on or after which the buyer of a security does not acquire the right to receive a recently declared dividend. -Also termed ex-date. Cf. DIVIDEND DATE.

extra dividend

See extraordinary dividend under DIVIDEND.

extraordinary dividend

A dividend paid in addition to a regular dividend, usu. because of exceptional corporate profits during the dividend period. - Also termed extra dividend; nonrecurring dividend; special dividend.

fixed-return dividend

informal dividend

A payment of salary, rent, interest, or the like to or for a shareholder as a substitute for a dividend. - Also termed disguised dividend.

informal dividend.

See DIVIDEND.

jus dividends

n. [Latin "right of dividing"] The right to dispose of real property by will.

liability dividend

See scrip dividend under DIVIDEND.

liquidating dividend

See liquidation dividend under DIVIDEND.

liquidation dividend

A dividend paid to a dissolving corporation's shareholders, usu. from the capital of the corporation, upon the decision to suspend all or part of its business operations. - Also termed liquidating dividend.

nimble dividend

A dividend paid out of current earnings when there is a deficit in the account from which dividends may be paid. 0 Some state statutes prohibit nimble dividends.

noncumulative dividend

A dividend that does not accrue for the benefit of a preferred shareholder if there is a passed dividend in a particular year or period. Cf. cumulative dividend.

nonrecurring dividend

See extraordinary dZuidend under DIVIDEND.

passed dividend

A dividend that is not paid when due by a company that has a history of paying regular dividends.

preferred dividend

See DIVIDEND.

property dividend

See asset dividend under DIVIDEND.

reinvested dividend

A dividend that is used to purchase additional shares in the corporation, instead of being taken in cash by the shareholder. See DIVIDEND-REINVESTMENT PLAN.

scrip dividend

A dividend paid in certificates entitling the holder to ownership of capital stock to be issued in the future. ( This type of dividend usu. signals that the corporation's cash flow is poor. - Also termed liability dividend.