Dividend Payments

Blue-Chip Stock
A blue-chip stock represents a national company renowned for its robust profit growth, consistent dividend payments, quality management, and top-tier products and services. The term 'blue-chip' is derived from the color of the most valuable gambling tokens.
CREST
CREST is an electronic share settlement system established by the Bank of England in 1996, revolutionizing the way securities transactions are settled in the UK by enabling electronic registration and instantaneous settlement, ultimately streamlining dividend payments and eliminating the need for paper certificates.
Equity Dividend Cover
A financial ratio indicating the ability of a company to pay dividends to its ordinary shareholders out of its distributable profits. A higher ratio suggests stronger dividend-paying capacity and financial health.
Fair Rate of Return
The fair rate of return is a level of profit that a public utility is allowed to earn as determined by federal and/or state regulators. Public utility commissions set this rate based on the utility's needs to maintain service to its customers, pay adequate dividends to shareholders, and maintain and expand plant and equipment.
Fiscal Agent
A fiscal agent typically refers to a bank or trust company that manages various financial transactions and responsibilities, such as disbursing funds for dividend payments, redeeming bonds and coupons, handling bond-related taxes, and paying rents.
Interest on Dividends
Interest earned on dividends from a participating life insurance policy left on deposit with the insurance company and subject to taxation.
Preferred Dividend Coverage (PDC)
Preferred Dividend Coverage (PDC) is a financial ratio used to measure a company's ability to pay its preferred dividends from its earnings. It is calculated by dividing the net income after interest and taxes, but before the common stock dividends, by the dollar amount of preferred stock dividends. This ratio tells how many times over the preferred dividend requirement is covered by current earnings.
Reconciliation of Movements in Shareholders' Funds
A financial statement summarizing the performance of an organization during a financial period, covering recognized gains and losses, dividend payments, and capital changes in shareholders' equity. Essential under the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).
Shareholder Value
An approach to business planning that prioritizes maximizing the value of shares for shareholders above other business objectives.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.