extra dividend
Học thuậtThân thiện
Definition
Noun: 1. A supplementary dividend payment: An "extra dividend" is a dividend payment made by a company to its shareholders in addition to its regular, scheduled dividend. It is typically a one-time or non-recurring payment, often declared when a company has exceptionally strong earnings, a large surplus of cash, or from the proceeds of a specific event like the sale of an asset.
Usage
- The term "extra dividend" is used specifically in corporate finance and investing contexts.
- It is announced separately from the regular dividend cycle.
- It signals to shareholders that the company has generated surplus capital beyond what is needed for its regular operations and planned investments.
Examples
- Noun:
- The board of directors declared an extra dividend of $2.00 per share following the highly profitable quarter.
- Shareholders welcomed the announcement of an extra dividend, funded by the sale of the company's non-core division.
- Unlike the regular quarterly dividend, the extra dividend is not expected to be repeated next year.
Advanced Usage
- "to declare/pay an extra dividend": The standard collocation for the corporate action of approving and distributing this payment.
- The company used its excess cash reserves to pay an extra dividend.
Variants and Related Words
- Special Dividend: This is a direct synonym for "extra dividend." Both terms are used interchangeably in financial markets to describe a non-recurring dividend payment.
- Regular Dividend: The scheduled, recurring dividend payment (e.g., quarterly or semi-annual) to which the "extra" dividend is supplementary.
- Dividend: The general term for a distribution of a portion of a company's earnings to its shareholders.
Synonyms
- Special dividend: A one-time dividend payment, identical in meaning.
- Supplementary dividend: Emphasizes its additional nature.
- Non-recurring dividend: Highlights that it is not part of the regular payment schedule.
Related Idioms/Phrases
- "A bonus for shareholders": This is a common non-technical way to describe the effect of an extra dividend.
- The record profits resulted in a bonus for shareholders in the form of an extra dividend.
Noun
- a dividend paid in addition to the regular dividend