Definition of liquidating dividend Sexs
These are rare and can occur for a variety of reasons such as a major litigation win, the sale of a business, or liquidation of an investment.
They can take the form of cash, stock, or property dividends.
kyoshino/Getty Images Companies that earn a profit can do one of three things: pay that profit out to shareholders, reinvest it in the business through expansion, debt reduction or share repurchases, or both.
When a portion of the profit is paid out to shareholders, the payment is known as a dividend.
It was literally said on Wall Street, “the purpose of a company is to pay dividends”.
Property dividends can literally take the form of railroad cars, cocoa beans, pencils, gold, silver, salad dressing or any other item with tangible value.
Cash dividends literally represent money sent to you in the mail or direct deposited into your bank account.
The goal of successful investing is to be able to have cash dividends pour into your life regularly so you don't need to work unless you desire.
By starting here, you'll learn to avoid tax traps such as buying dividend stocks between the ex-dividend date and the distribution date, effectively forcing you to pay other investors' income taxes!
You'll also learn why some companies refuse to pay dividends while others pay substantially more, how to calculate dividend yield, and how to use dividend payout ratios to estimate the maximum sustainable growth rate.