dividend
81dividend cover — An accounting ratio defined as net earnings per share divided by net dividend ( dividends) per share. The purpose of the ratio is to identify how much of a company s profits are being distributed to shareholders and how much is being retained to… …
82Dividend swap — A dividend swap is an over the counter financial derivative contract (in particular a form of swap). It consists of a series of payments made between two parties at defined intervals over a fixed term (e.g., annually over 5 years). One party the… …
83Dividend reinvestment plan — A dividend reinvestment program or dividend reinvestment plan (DRIP) is an equity investment option offered directly from the underlying company. The investor does not receive quarterly dividends directly as cash; instead, the investor s… …
84Dividend Aristocrat — A company that has continuously increased the amount of dividends it pays to its shareholders. To be considered a dividend aristocrat, a company must typically have raised dividends for at least 25 years. More specifically, the company needs to… …
85Dividend Capture — A timing oriented investment strategy revolving around the purchase and sale of dividend paying stocks. Dividend capture is specifically the practice of buying a stock just prior to the ex dividend date in order to capture the dividend, then… …
86Dividend ETF — Any exchange traded fund that seeks to provide high yields by investing in a basket of high dividend paying common stocks, preferred stocks or REITs. There are dividend ETFs that contain only U.S. domestic stocks and global dividend ETFs, which… …
87Dividend Rate — The total expected dividend payments from an investment, fund or portfolio expressed on an annualized basis plus any additional non recurring dividends that may be received during that period. Depending on the company s preferences and strategy,… …
88Dividend Arbitrage — An options trading strategy that involves purchasing put options and an equivalent amount of underlying stock before the ex dividend date and then exercising the put after collecting the dividend. When used on a security with low volatility… …
89Dividend Tax Credit — The amount a Canadian resident applies against their tax owing on the grossed up portion of dividends received from Canadian corporations. The dividends an individual receives from Canadian corporations are grossed up by 25%. This amount is then… …
90Dividend Yield — A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Dividend yield is calculated as follows …
