A dividend is a distribution of profits by a company to its shareholders, which can take various forms such as cash, stock, or property. There are four types of dividend policies: regular, stable, irregular, and none, with specific key dates related to dividend declaration and payment. Dividend coverage is represented by the payout ratio, indicating how much of a company's earnings are distributed as dividends.

2. What is dividend?
 Dividend refers to the amount
distributed by company to their
shareholders as profit.
 Dividend may or may not given by
the firm, it will be decided by
management of that firm.

3. types of Dividend
 Cash Dividend: is the payment of actual cash from
the company directly to the shareholders
 Stock Dividend: are paid out to shareholders by
issuing new shares in the company.
 Property Dividend: is a dividend paid to investors
with assets other than cash.
 Scrip Dividend: receiving of a cash dividend or the
equivalent in additional shares of the company.

4. 4 types of dividend policies
 Regular Dividend Policy: pay out a dividend to
its shareholders every year.
 Stable Dividend Policy: pay out a defined fixed
percentage of profits as dividends every year.
 Irregular Dividend Policy: May or may not pay
dividend
 No Dividend Policy: paying no dividend to the
shareholders irrespective of its profit or loss

5. Key Dates
 Date of Declaration: is the date at which the board of directors
announces and approves the payment of dividend. The declaration date
includes the size of the dividend being issued and outlines the record
date and payment date.
 Date of Execution: is the day you actually initiate the stock
transaction
 Closing Date (Settlement date): is the date on which the Stock trade
is finalized
 Ex-Dividend Date: is the first day that a stock trades without a
dividend.
 Date of Record: is the date at which the investor must be on the
company’s books in order to receive a dividend.
 Payment Date: is the date at which the dividend is paid to shareholders.
Dividend payments may be either mailed or electronically transferred to
the accounts of shareholders.

6. dividend coverage
Dividend Coverage is the payout ratio.
Payout ratio greater than 100 means company is
paying out then they earned
Payout Ratio = (Dividend per Share/Earning per Share)*100

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