Archive for May, 2011

Calculating the Accumulated Dividend for Every Year

Sunday, May 22nd, 2011

A dividend is a well known word in the finance industry. It is a part of the company’s net profit, which it shares with its preferred as well as common segment of stockholders. Though many companies directly pay out dividends at the end of every annual cycle, sometimes, that might not be the case. Owing to some financial problems or turn of policies, a company may not be able to pay you the dividend, in which case, the due is forwarded over to the next year. This due is known as the accumulated dividend.

Find out the amount of fixed dividend a company pays, along with the last time it has paid out. Find out the total outstanding dividend and multiply it by the number of shares you hold (e.g. 10, 100, etc.). The value will tell you how much you should receive when the company pays out your share of dividend.