Almost all people who are investing in stocks, certainly expect a return or a high rate of return, well, the form derived from the return or rate of return in the world of stocks is available two types of capital gains and dividends.
In general, capital gain means selling less the price of buying or increasing the price after you spend a stock product.
For example, if you carry out the purchase of stock products owned by Bank Rakyat Indonesia or BRI which has a code (BBRI) at a price of Rp. 4.000.
Then, you carry out sales on BBRI pas touch the price of Rp. 4.500. So, the capital gain you get is 500 per share, or except in the dosage is 12.5%.
That means you can enjoy the benefits derived from the increase in price or value derived from BBRI shares.
However, the benefits that can be felt in investing in stocks are not just capital gains. Another form of profit or return that you can get is dividends.
In general, a dividend is a right or share derived from a company that makes a profit to a party that is an investor or shareholder.
In buying a stock or investing in a company, it is certain that what investors want is the next company to achieve a large profit or profit.
It was because the company successfully earned a large profit, then the next company is able to distribute profits to investors or shareholders into a form of dividends.
Well, because of that, this article will explore what dividends are. The discussion comes from the definition of dividends according to experts, the types of dividends, the factors that influence achieving dividends to the procedure and steps to calculate your dividends.
As per the introduction above, dividend is the share to the party who has shares from a company that is adjusted to the quantity of sheets owned.
The majority of dividend sections are carried out with fixed-term passes, but sometimes accounts are available that carry out special or additional dividend sections beyond the specified part Pass.
Dividends will be distributed to those who have shares, but with a note that the company has made a sizeable profit and the board of Directors of a company has assumed it is appropriate to announce a share of the dividend.
The function derived from this dividend itself is as a return derived from investor Services because it has entered capital in a stock product derived from a company. That is what brings the impact of companies that make profits will add as a profit to investors or shareholders.
In addition to the prevailing opinion, calculated dividends are considered as a right of shareholders or common stock to obtain a share derived from the profits of a company.
If a company has determined that it will do part of the profits in the form of dividends, then all owners of shares from the next company will receive similar rights according to the quantity of ownership.
However, there are some reasons that bring the impact of the company does not always add all to the profits to shareholders. The reason used is usually in the interests of increase the company’s capital.
A company can afford not to exercise its share of dividends because of available interests that are more prioritized. For example, the company’s profits are preferred for the sake of expansion or business development, surely this can be the reason a company does not carry out dividends to its shareholders.
However, companies usually always promise to issue dividends so as to increase the confidence of shareholders for long-term plans. In addition, the promise of dividend issuance is very influential to attract interest from new investors who crave to achieve a steady income.
Types Of Dividends
After clearly understanding comes from dividends, then these are some types of dividends that you need to know, including::
Cash dividends are dividends distributed by a company to its shareholders in the form of cash or cash. This type of dividend can be said to be the most frequently done part of the dividend.
Shareholders are also very fond of the part with the type of cash dividends, it is because shareholders will get cash benefits.
The period for which the cash dividend part is capable of being worked comes from two to four times per year, the next related part comes from the period. For the record, this part of the dividend will be taxed according to the applicable decision.
This dividend is a fairly rare type of dividend, usually because the distribution process is relatively not easy. Calculated companies usually carry out the dividend section with this step due to the unavailability of cash.
It can be because cash from a company is being used in the investment of other companies ‘ shares or for inventory purposes. If the cash that appears more in a fairly large quantity, it is feared that it will make the selling price of investments or inventories fall so that it can harm the company or shareholders.
As a result, part of the dividend comes from the company to investors or shareholders after that try to work into the form of assets
Basically, liquidation dividends are dividends distributed to shareholders that are part profit and part return on capital. Companies that will add liquidation dividends are usually companies that have plans to terminate their companies such as joint ventures or companies that are experiencing bankruptcy.
When the company goes bankrupt and still has the remaining wealth, the remaining wealth will then be distributed to shareholders. This is called the liquidation dividend. But unless the company has no capital left, then the company was not able to share anything.