The portion of the issuer’s equity paid directly to shareholders. It is generally paid on common or preferred shares. The issuer or its representative provides the amount, frequency (monthly, quarterly, semi-annually, or annually), payable date, and record date. The exchange that the issue is listed on sets the ex-dividend/distribution (ex-d) date for entitlement. An issuer is under no legal obligation to pay either preferred or common dividends.
Archives
Energy or Royalty Trust
Investment vehicles that may engage in the development, acquisition, and/or production of oil and gas reserves. The trust receives royalty income from producing properties (essentially, net cash flow) and then sells interests in the trust (called trust units) to investors. Conventional oil and gas royalty trusts are actively managed portfolios holding assets of mature producing properties. Substantially all of the cash flow generated by the oil and gas assets, net of certain deductions, such as administrative expenses and management fees, is passed on to the unit holders as royalty income. Capital expenses may also be deducted, but are usually subject to restrictions on the amount. The distributions are highly dependent upon the cash flow generated by the trust. In general, the largest variable in determining the level of cash flow is the price of crude oil and natural gas. Royalty trusts provide an alternative (from owning the shares of individual companies) for investors to participate in the oil and gas sector.
Cum-Dividend/Distribution Date
The trading day before the ex-dividend/distribution (ex-d) date. It is the last day on which the securities can be traded and on which the buyer is entitled to the dividend/distribution.
Cum-Dividend/Distribution Date
The trading day before the ex-dividend/distribution (ex-d) date. It is the last day on which the securities can be traded and on which the buyer is entitled to the dividend/distribution.
Dividend Yield
Total of 12-month’s dividends paid (historical or forecast) divided by the latest share price.
Derivatives
Options and other instrument whose value depends on an underlying security. For instance, the value of a call option on Cisco Systems (derivative) fluctuates with the price of Cisco System’s stock.
EPS
Earnings per share.
Cyclical Stock
A stock of a company in an industry sector that is particularly sensitive to swings in economic conditions.
Dividend/Distribution Payable Date
The date set by the issuer on which the dividend/distribution will be paid.
Diluted Earnings (a.k.a. fully diluted earnings)
Total of after tax (bottom line) earnings divided by number of common shares including unexercised stock options, and unconverted preferred stock and convertible bonds. Undiluted earnings would be after tax earnings divided by issued stock only, not considering outstanding options, etc.