What is a Dividend❓

For this article, we would like to present our knowledge about the method of dividend payment of the company. That there is a way to leave each other. If you're ready, let's go see it.

🔸 Get to know dividend payment

A dividend is a return that a company distributes from its profits to its holders in proportion to the number of shares it holds. The dividend payment will be made from two main parts as follows: 1. Net profit which occurred during the period. 2. Unallocated profits that have accumulated

🔸When will the dividends be paid by the company?

In general, the dividends that the company will be able to pay Must be a company with financial liquidity and sufficient cash flow and must have a strong financial position

🔸 Methods for paying dividends

1. Cash payment Most of the companies will pay dividends in cash.

2. Payment by making payments in shares by increasing the number of shares of the business which will have the total value of the company without any change which results in a decrease in the price per share But there will be compensation from the number of stock dividends that have been increased.

3. Stock breakage

4. Buying back shares

5. Consolidation

6. Dividend payment by other methods

How are you? Hope this article will be useful for all readers and see you in the next article.

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