TAILIEUCHUNG - Dictionary of Finantial and Business Terms part 5

Dividend discount model (DDM) A model for valuing the common stock of a company, based on the present value of the expected cash flows. Dividend growth model A model wherein dividends are assumed to be at a constant rate in perpetuity. Dividend limitation A bond covenant that restricts in some way the firm's ability to pay cash dividends. Dividend payout ratio Percentage of earnings paid out as dividends. Dividends per share Amount of cash paid to shareholders expressed as dollars per share. Dividend policy An established guide for the firm to determine the amount of money it will pay as. | 41 Dictionary of Finantial and Business Terms Lico Reis - Consultoria L nguas licoreis@ Dividend discount model DDM A model for valuing the common stock of a company based on the present value of the expected cash flows. Dividend growth model A model wherein dividends are assumed to be at a constant rate in perpetuity. Dividend limitation A bond covenant that restricts in some way the firm s ability to pay cash dividends. Dividend payout ratio Percentage of earnings paid out as dividends. Dividends per share Amount of cash paid to shareholders expressed as dollars per share. Dividend policy An established guide for the firm to determine the amount of money it will pay as dividends. Dividend rate The fixed or floating rate paid on preferred stock based on par value. Dividend reinvestment plan DRP Automatic reinvestment of shareholder dividends in more shares of a company s stock often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. Dividend reinvestment plans allow shareholders to accumulate stock over the Long term using dollar cost averaging. The DRP is usually administered by the company without charges to the holder. Dividend rights A shareholders rights to receive per-share dividends identical to those other shareholders receive. Dividend yield Funds Indicated yield represents return on a share of a mutual fund held over the past 12 months. Assumes fund was purchased 1 year ago. Reflects effect of sales charges at current rates but not redemption charges. Dividend yield Stocks Indicated yield represents annual dividends divided by current stock price. Dividends per share Dividends paid for the past 12 months divided by the number of common shares outstanding as reported by a company. The number of shares often is determined by a weighted average of shares outstanding over the reporting term. DM Deutsche German marks. Doctrine of sovereign immunity Doctrine that says a nation may not be .

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