Dividends

The speaker covers the key dates which are associated to dividend payments; the declaration date, record date, and payment date.  The declaration date is when the board votes on the amount of the dividend.  The stock price will increase on this announcment.  The date of record determines which investors will be e

The speaker provides a visual representation of the dividend discount model as applied to preferred stocks.  The DDM basically, determines the net present value of all future dividend

The speaker discusses that US companies, by in large, pay dividends in the same amount of the previous years.  He suggests that dividends follow earnings and then goes on to suggest that US companies are now buying stock back in leiu of paying

The speakers discusses tax implication of dividends payments.  He suggest that it can get very confusing and leveraging tax software such as gainskeeper will make the job much easier. 

Definition of Dividends

Dividends are the distribution of a company's gains over a fixed period of time to shareholders.  This disbursement of capital is done so under the authority of the board of directors.  Dividends are issued on a per share basis and is called a per share dividend.