What is a Dividend?
Investors buy shares in a company for two principal reasons: generating investment returns as shares rise in price, and receiving dividends. Keith briefly explains what dividends are, what considerations companies have when it comes to issuing dividends and how dividends impact share price.
Overview
This is essentially when a company rewards its shareholders by paying out cash every year. It is generally paid out of a company’s annual profits or retained earnings.
Key learning objectives:
Define Dividend and Scrip Dividend
Discuss the potential reasons to not pay out dividends
Identify when investors are eligible for dividends, and when they may invest in equity
How to calculate Dividend Yield
Summary
Expert
Keith Mullin
Keith is the founder and director of KM Capital Markets, a media and thought-leadership consultancy. He spent the past 35 years working in specialist capital markets media and has had a ring-side seat at all of the major market events. Prior to setting up KM Capital Markets in 2017, Keith worked at Thomson Reuters.
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