Dividend

(lat. dividendus - subject to division; English dividend) part of the net profit of a joint-stock company, distributed among shareholders in accordance with the number of shares. D. is paid first on preferred (preferential) shares (before taxes are paid and ordinary D is distributed), and then on ordinary shares. The amount of D. paid on preferred shares is fixed in advance. D. for ordinary shares may vary depending on the profitability of the joint-stock company and the directions for using the profits received. In case of incomplete payment of shares, D. are paid to the shareholder in proportion to the paid part of the value of the shares, unless otherwise provided by the charter of the joint-stock company. D. can be paid quarterly, twice or once a year. D. are not paid for shares on the balance sheet of a joint-stock company. The size of D. for ordinary shares cannot be more than recommended by the Board of Directors of the company, but can be reduced by the general meeting of shareholders. The final size of D. is established by the general meeting of shareholders. The fixed rate for preferred shares is established by the company when they are issued. The General Meeting of Shareholders and the Board of Directors of the company have the right to decide on the inappropriateness of paying D. for ordinary shares based on the results of the period or for the year as a whole. D. is entitled to shares acquired no later than 30 days before the official date of its payment