Due by Thursday day 3, week 1. DQ #2 What are the different types of dividends that a company can pay out? Which type would you prefer? Why? When should a company pay dividends? The different types of dividends which a company can pay out are cash dividends, property dividends, liquidating dividends, and stock dividends. • Cash dividends-are voted on by a company’s board of directors, a list is then made up of all of the company’s stockholders/investors, then the company’s board of directors vote on the amount which will be paid out. • Property dividends- are paid in the form of a company’s assets (land, real estate, merchandise, or investments), whichever is decided (or designated) by a company’s board of directors. • Liquidating dividends-are dividends which are based on anything other than retained earnings. Liquidating dividends usually are returns on stockholders’ investments, instead of profits. • Stock dividends-happen when a company issues its own stock to shareholders at
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This note was uploaded on 02/19/2010 for the course ACC 362 taught by Professor Wormer during the Spring '07 term at University of Phoenix.