A non-recurring distribution of company assets, usually in the form of cash, to shareholders which is of unusually large size or different date of issue compared to normal dividends paid out by the given company. Also referred to as a "special dividend".
Generally, extra dividends are declared following exceptionally strong company earnings results, as a way for a company to distribute exceptional profits directly to shareholders. Extra dividends can also occur when a company wishes to make changes to its financial structure or to spin-off a subsidiary company to its shareholders. For example, GenTek Inc issued a special cash dividend of $31 per share paid on Mar 16, 2005, in order to restructure towards a more debt-based financing mix.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
extra dividend — A temporary increase in a firm s dividends beyond the normal level. Bloomberg Financial Dictionary * * * extra dividend UK US noun [C] ► FINANCE SPECIAL DIVIDEND(Cf. ↑special dividend) … Financial and business terms
extra dividend — Dividend paid by corporation in cash or stock beyond that which is regularly paid. See also ex dividend extraordinary dividend … Black's law dictionary
extra dividend — noun a dividend paid in addition to the regular dividend • Hypernyms: ↑dividend … Useful english dictionary
extra dividend — Sometimes called an extraordinary dividend; a dividend, whether cash or stock, paid by a corporation and representing an accumulated excess of earnings over normal return on capital invested and constituting a distribution or a capitalization of… … Ballentine's law dictionary
extra dividend. — See special dividend. * * * … Universalium
extra dividend — special dividend … Accounting dictionary
extra dividend. — See special dividend … Useful english dictionary
dividend — a distribution of the profits of a company among its members or shareholders. Glossary of Business Terms A portion of a company s profit paid to common shareholders and preferred shareholders. A stock selling for $20 a share with an annual… … Financial and business terms
Dividend — A dividend is a portion of a company s profit paid to common and preferred shareholders. A stock selling for $20 a share with an annual dividend of $1 a share yields the investor 5%. The New York Times Financial Glossary * * * dividend div‧i‧dend … Financial and business terms
dividend — The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The… … Black's law dictionary