Payment of dividends
Dividends (lat. dividendum - to be divided) - profit of a joint stock company or economic entity, which is distributed among the shareholders or security holders in accordance with the share of shares belonging to them.
Distributable amount is calculated after taxes, replenishment of insurance and other reserves, deductions to funds, etc.
In other words, dividend - is a sum of money received for the contribution to the development of the company, expressed in the company shares received (monetary dividend). Less frequently, dividends are paid in company property or shares.
Dividends can be received both by ordinaryas well as by preferred shares.
How are dividends accrued?
Акционерное общество (предприятие) в течение года получает прибыль от своей деятельности. Затем, собрание акционеров постановляет, какой процент от прибыли пустить на дивиденды (разделить между акционерами). Именно из этих средств и выплачиваются дивиденды. Нужно помнить, что компания не обязана делать выплаты каждый год. Решение о выплате должно быть принято общим собранием акционеров. А собрание зачастую решает, что куда выгоднее вложить деньги в дальнейшее развитие компании в надежде на будущие доходы.
The exception is the preferred shares, on which dividends are paid in any case (unless the company goes bankrupt).
How are dividends paid?
The order of payment and the amount of dividends to be paid are determined by the general meeting of shareholders. The amount of dividends depends directly on the result of the company's activity, on the net profit received after all taxes and reflected in the annual financial statements.
According to Russian law, dividends can also be paid in the middle of the year based on the results of a quarter, six or nine months of activity. But in practice such an order is not common. On the contrary, shareholders often refuse to distribute profits at the meeting, forming special funds or reinvesting profits for further activities in order to increase competitiveness.
Dividends can be paid once a year or more often, but are called interim or final (i.e., annual) dividends. Some companies pay dividends steadily from year to year.
How big is the dividend return?
В настоящее время в России дивидендная доходность (то есть отношение полученного дохода к цене акции) составляет в среднем 7%. По сравнению с зарубежными показателями (где есть предприятия с очень высоким дивидендным доходом), это крайне мало. Поэтому в России едва ли не единственным способом заработка на акциях является спекуляция на их курсе.
Nevertheless, the preferred shares of some companies in Russia can also bring a decent income.