Dividends

Dividends as a source of earnings after the financial boom and the stock market boom of the 90s of the last century somewhat lost their own appeal among investors who rushed to quickly get in the fluctuations of the promotion rate. In particular, stock speculation is famous for having stopped a little with the formation of the intern network. However, the principal reason for the development of prices in the promotion is the probability of extracting dividends on them.

Dividends are something that needs to be divided, i.e. it is the area of net benefit (or part of the benefit) of the firm or company between the founders, shareholders in connection with both the number and the option of significant securities. Dividend payments have every chance of being permanent, for example, quarterly or once a year, or they may not be paid at all. This depends on the generally accepted conclusions of the shareholders' meeting, the statute and the interest rate policy of the firm.

The interest rate policy, which is formed by the committee of chiefs, is considered a very fundamental inventory in the monetary and financial efficiency of the company. Specifically, the effective location of the firm's benefits depends on the conclusions adopted within the framework of the interest rate policy. Given the huge number of reasons, both with the capital of the firm personally and with the capital of the market as a whole, the committee of directors decides when and how much the partners will acquire dividends on any of their own promotions.

From the moment of acceptance of the conclusion about the interest payment to the moment of its extraction, several steps are overcome, or, rather, key dates. The 1st date is the "announcement date" – the committee of directors notifies about the amount and timing of payment of dividends. The subsequent date is the "register closing date" – the deadline for registration of holders of promotions, which gives an advantage in the acquisition of payments for these promotions. If the owner implements his own promotions before this date, then the new owner already acquires the payment (of course, if he has time to fix himself), however, if the implementation of promotions happened already after the completion of the "closing date of the register" in the so-called "ex-interest dates", then the previous owner reserves the advantage to get dividends on already requested promotions. And the deadline is the "payment number" – in fact, this is the factor from which interest payments to partners and holders of promotions start.

There are cases when the board of directors of the company perceives the conclusion of non-payment of dividends or a decrease in their volume. This, for example, happens later when the company has a need for an additional. investments, and even in times of declining benefits, when the firm will need a reserve of foreign exchange funds to compensate for the damages of the coming periods. In similar variants, some firms cheat the reinvestment of dividends, i.e. shareholders acquire dividends not in currency equivalent, but again with promotions, however at the lowest cost than if they took these promotions through the exchange without the help of others.

The amount of percentage profitability is expressed, as a rule, as a percentage and is calculated as the news of the annual payment of dividends on the promotion to the market value of the stock. Since the interest payment loan is tied to the nominal price of promotions, the higher the exchange value of the promotion, the lower the interest in percentage profitability, and conversely, the lower the market value, the greater the interest in the profitability of the promotion. Somewhat exaggerating, it can be stated that promotions for which dividends are paid with steady regularity are considered a stash for a rainy day.

The probability of a firm paying dividends is completely combined with its real profit and is considered a sign of the monetary and financial condition of the company. Therefore, striving to increase your own investment portfolio with interest-bearing promotions, i.e. making long-term investments, you need to thoroughly learn the economic situation of the company, its interest rate policy and business reputation. It is not necessary to forget that very quickly unwinding companies are trying to reinvest revenue in the upcoming formation of their own plans, and not to ennoble the economic material well-being of their own shareholders.