Kinds of Dividends

Kinds of Dividends

Dividends may be classified as (i) cash dividends for Bonus shares, (ii) Property dividends. (iii) Scrip dividends, and (iv) Dividends payable in bond. Cash dividends, and (iv) Dividends payable in bond. Cash dividends mean that shareholder receive additional shares of the company paying dividends. A property dividends is paid company paying dividends. A property dividends is paid is assets other than cash and bonds share e.g., company’s own products or the securities of its subsidiaries. The liquor and wine companies have at times distributed their products as dividends in some western countries. Scrip dividends involve companies issuing notes or scrips promising to pay dividends at later date (with or without interest). They were issued of 1930’s. Lastly, shareholders may also receive dividends in the form of bonds and debenture of the company a very events in, finance even in the west.

Cash dividends are by for the most important and regular kind of dividends. Stock dividends or bonus share rank second in India. We know only of these two types of dividends.