What Are Company Dividends;10 Types You Must Know

The Company Dividends is the portion of the profits of a company which is delivered to the shareholders of the company.One share each shareholder will receive a payment for part of the dividend, this is because in the The moment a person becomes a shareholder has the right to collect dividends . Dividends are the part of the profits obtained and that are destined to the shareholders.

This is part of the liabilities of the company , since in part it leaves the equilibrium point in the form of profit distribution, this makes shareholders want to buy more and more shares of the company.

The assets of a company represent the part of the active stock and the part of the capital stock of a company. When a person buys shares in a company, they receive rights over it, as well as the partner label. In this way the shareholder becomes one of the owners if the action is very significant . In other words, through a significant purchase of shares, you become the owner.

What Are Company Dividends;10 Types You Must Know

The distribution and type of dividends is known at the moment a payment is received and is in charge of a dividend supervisor , at that moment the conditions are set so that everything goes as planned. The types of dividends are usually divided into three classes, and vary according to the way that the shareholder is going to be paid, these are:

Stock payments

It is one of the most used payments by the largest and most powerful companies, it consists of the delivery or transfer of as many shares according to the share that is already owned . A clear example of this is that if you already own a thousand shares and the dividend resulted in a profit of one share for every ten shares, it would be a hundred shares that must be delivered.

Cash payment

They are the companies that pay cash to shareholders . This means of payment is the most classic, it is also a very used means, it consists of paying a sum of money for each amount of action. That is why companies must manage a flexible budget .

Divide Scrip

This is the method known a short time ago, it consists of a mixture or union of the two types of dividend previously discussed, in which the shareholders have the power to choose which payment method they want.

Types of actions

Remember that shares are the type of value that is given to shareholders in a company, they are the rights that they acquire after paying. There are different types of actions, these are:

Nominal shares

The profits are delivered as shares to the shareholders according to the nominal value, remembering that the nominal value is the value assigned by the owners.

Book value share

Its value depends on a numerical formula carried out by a certain counter . The formula must have liabilities, equity, earnings and number of shares of the shareholder.

Ordinary shares

They are the shares traded according to the titles in the market , which grant participation in a company. We must bear in mind that the price of this is always changing in the stock market.

Equity shares

These are the actions that give money or profits to the main shareholder , remembering that shareholders are the ones who help to create a company . The holders of the shares must be partners to be able to carry out this type.

Privileged action

These shares are paid according to the seniority of the partner, that is to say that the payment of a divindend can have 3% or 4% more.

Preferred stock

It is the type of action in which the payment is granted to the shareholders, but they are not recognized as partners , that is, they cannot make decisions in the company .

Finally, knowing the types of dividends and shares in a company, we can identify the profits and expenses of the company, as well as we can determine who are the main shareholders of the company.

by Abdullah Sam
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