Understanding Stock Dividends According To Experts

Understanding Stock Dividends According To Experts

Dividend is one of the terms that often appear in the same investment. You could say that stock dividends are a condition that many stock investors look forward to.

The term dividend is often used to describe many things related to revenue sharing. Where the term dividend itself refers more to the financial component that can be assets such as cash, buildings and so on.

In simple terms, dividends are the distribution of profits that will be given by the company or issuer to shareholders. The existence of dividends is also a stock investment advantage that can be obtained in addition to capital gains when selling shares.

Dividends in the world of stock investment will be divided into two types, namely cash dividends and stock dividends. Where to cash dividend is a profit that can be obtained in the form of cash on a certain amount of rupiah for each share.

As for stock dividends, they are profits for shareholders in the form of shares and not in the form of cash. Stock dividends are not just about some of the things above.

However, there are many other interesting things related to stock dividends. Well, we will dissect more deeply related to stock dividends through the explanation in this article.

Understanding Stock Dividends

As the previous explanation if the dividend is a distribution to parties who own a share in a company in accordance with the amount of shares owned. Usually, this dividend distribution process will be carried out at the right time frame.

Even so, some conditions sometimes indicate that there is a special or additional dividend distribution outside the pre-determined distribution time.

Where later dividends will be distributed to shareholders but with a note If a company has generated substantial profits and the board of Directors of a company has also assumed that the condition is indeed feasible to do the dividend distribution process.

The function of the dividend is usually as a reciprocal form of investor Services because it has invested in a stock product of a company. Therefore, companies that benefit will provide benefits to their investors or shareholders.

In addition, dividends can also be considered as a shareholder’s right or commonly referred to as common stock to be able to get a share from the profits of a company.

If a company has made a decision to divide profits in the form of dividends, then all owners of shares of a company will also get the same amount as the amount of his property.

Even so, there are several reasons that make the company not always able to provide all the benefits it gets to the shareholders. Usually, this happens because it is used for the benefit of increasing the company’s capital.

A company can do the process of not distributing dividends because of a need that turns out to be more priority. For example, is the result of the profits of a company is preferred for the purposes of expansion or business development.

Of course, this can be used as an excuse for companies not to distribute dividends to their shareholders. Even so, the company will usually give a promise to issue dividends as a form of increasing confidence for its long-term shareholders.

Not only that, the article promises dividend distribution can affect the interest of new investors who want to get a steady income.

Understanding Dividends According To Experts

Once we know the meaning of dividends in general. Next, we will still discuss about the definition of dividends but from the opinion of some experts. Well, for more details, here is the definition of dividends from experts.


Baridwan has an opinion if the dividend is part of a profit that can be given to shareholders whose number is equal to the number of shares owned by the shareholder.

Every year there will likely be a change in the size of a stock dividend that will be obtained by shareholders. Which amount also depends on how much profit will be obtained by a company.

Scott Besley and Eugene F. Brigham

Scott Besley and Eugene F. Brigham argued that dividends are the process of distributing profits from a company to shareholders. Whether it’s profits earned when the period is running or during the previous period.

Paul D. Kimmel, Jerry J. Weygandt, and donald E. Kieso

Paul D. Kimmel, Jerry J. Weygandt, and donald E. Kieso has an opinion if the dividend is a distribution made by a company to shareholders in a professional manner according to the number of ownership shares.

This is done so that shareholders can benefit according to the percentage of investment for the company.

Jamie Pratt

Jamie Pratt explains that dividends are a form of distribution of cash, shares, and property to shareholders of a company. Dividend is also a revolution of the board of Directors of the corporation on a quarterly basis with the amount announced on a per share basis.

Nikiforos K. Laopodis

Nikiforos K. Laopodis argues that dividends are cash payment activities that will be carried out by each company for its shareholders. Dividends are also a form of representation from shareholders on direct and indirect receipts from investments in the company.

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