Types of dividents

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Types of dividents

  1. 1. TYPES OF DIVIDENTS PREMCHAND 12ME1E0020
  2. 2. Introduction Dividents are classified into various forms. Dividends paid in ordinary course of business are known as profit dividends Dividends paid out of capital are known as liquidation business
  3. 3. Definition A dividend is a distribution to shareholders out of profit or reserves available for the purpose ----------Institute of charted accountant of India
  4. 4. On the basis of
  5. 5. On the basis of types of shares Equity Dividend Preference Dividend
  6. 6. Equity Dividend Equity Dividend: Dividends paid on equity is called equity dividends Preference Dividend: Dividends paid to the preference customer
  7. 7. ON THE BASIS OF MODE OF PAYMENT CASHDIVIDEND BONUS SHARE STOCKDIVIDENDS SCRIPORBANDDIVIDEND PROPERTY DIVIDENDS COMPOSITE DIVIDEND
  8. 8. ON THE BASIS OF MODE OF PAYMENT CASHDIVIDEND: It is a methods of paying dividends. Payment of dividends in cash results in outflow of funds and reduces the company’s net worth where share holders get an operating to invest the cash in any manner by desire.These is why ordinary share holders perform the receive dividend in cash BONUS SHARE STOCKDIVIDENDS: Stock dividends means issue of bonus shares to the existing share holders. It company does not have liquid resources its is barrier to declare stock dividend.
  9. 9. ON THE BASIS OF MODE OF PAYMENT SCRIPORBANDDIVIDEND: A scrip dividend promise to pay the share holders at a future specific data. In case a company does not have a sufficient fund to pay dividends in cash, it may issue notes or bonds for amount duet share holders. PROPERTY DIVIDENDS: Property dividends are paid in the form of some assets other than cash. They are distributed under exceptational circumstances and are not popular in India. COMPOSITE DIVIDEND: Where dividends are paid party in the form of cash and party in other forms. It is called composite dividend. It is not a new technologies for payment of dividend it is an earlier discussed technologies
  10. 10. ON THE BASIS OF TIME PAYMENT SPECIAL DIVIDEND REGULARDIVIDEND INTERIMDIVIDEND
  11. 11. ON THE BASIS OF TIME PAYMENT INTERIMDIVIDEND: Generally dividends are declared at the end of financial year, but sometime company buys dividends before if declares dividend in annual general meeting IN OTHERWARDS Dividends paid between tow annual general meetings. It is paid when company’s board of director thinking that company earns huge amount of profits
  12. 12. ON THE BASIS OF TIME PAYMENT REGULARDIVIDEND: It is decaled on annual general meeting is called regular dividend. Every year company declares dividends in is annual general meeting SPECIAL DIVIDEND: A sound dividend policy should be formed in such a way that rate of dividend should be change frequents year after year.Fate of dividends be static. If there is huge abnormal extra profits, company should declared as special dividend. Where share holders don of extra per the same years it may or may not be happens.
  13. 13. Thank You K PREMCHAND 12ME1E0020

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