Cash Dividends Per Share
Cash dividend per share is
one kind of dividend which is paid to the shareholder of the firm in cash out
of each share of stock. High-performing companies frequently pay cash dividend
to its shareholders as it needs to offer dividends to attract probable
investors to buy its stock and retain its current shareholders.
Importance of Cash Dividends Per Share
Cash dividend per share
each year is very much important to notice as paying dividend in an increasing
order indicates comparatively better performance over time and vice versa. If a
firm does not give dividend, it means that the firm is not capable of making
enough profit to give return on its shareholders faith on the firm. Not paying
dividend also discourse investors to invest on that firm’s stock and eventually
the value of that share decrease.
Example: Suppose, Northern Corporation (a
fictitious company) has paid $ 0.65 worth of cash as dividends in the year 2011
and $ 0.62 in the year 2010. This means that the value of cash dividends will
fluctuate based on decisions of board of directors.
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