Dividends can be classified in several ways: 1. Based on the source of funds, dividends are either profit dividends paid from earnings or liquidation dividends paid from capital. 2. Based on the type of shares, dividends are either equity dividends paid to ordinary shareholders or preference dividends paid to preferred shareholders. 3. Based on the payment method, dividends can be paid in cash, stock, bonds, property, or a combination through composite dividends.

1. TYPES OF
DIVIDENTS
PREMCHAND 12ME1E0020

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. Definition
A dividend is a distribution to shareholders out of
profit or reserves available for the purpose
----------Institute of charted accountant of India

5. On the basis of

6. On the basis of types of shares
Equity Dividend
Preference Dividend

7. Equity Dividend
Equity Dividend: Dividends paid on equity is called equity
dividends
Preference Dividend: Dividends paid to the preference
customer

8. ON THE BASIS OF MODE OF PAYMENT
CASHDIVIDEND
BONUS SHARE STOCKDIVIDENDS
SCRIPORBANDDIVIDEND
PROPERTY DIVIDENDS
COMPOSITE DIVIDEND

9. 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.

10. 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

11. ON THE BASIS OF TIME PAYMENT
SPECIAL DIVIDEND
REGULARDIVIDEND
INTERIMDIVIDEND

12. 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

13. 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.

14. Thank You
K PREMCHAND
12ME1E0020