Corporate Actions, Dividends & Governance

Delisting

The removal of a company's shares from trading on a stock exchange.

Test: the security is no longer admitted to dealings on the exchange, whether at the company's initiative or the exchange's qualitative

Demerger

The separation of a business division into an independent company, with shares issued to the existing shareholders.

Test: an undertaking transfers to a resulting company, whose shares are issued to the demerged company's shareholders in proportion to their holdings qualitative

Corporate Actions, Dividends & Governance

Dividend

A distribution of a company's profits to its shareholders, paid in cash out of distributable reserves.

Total Dividend Paid = Dividend per Share x Number of Shares Outstanding ₹

Corporate Actions, Dividends & Governance

Dividend Payout Ratio

The proportion of a company's earnings distributed to shareholders as dividends.

Dividend Payout Ratio = Dividend per Share / Earnings per Share x 100 %

Corporate Actions, Dividends & Governance

Dividend per Share

The total dividend declared for a period divided by the number of shares outstanding.

Dividend per Share = Total Dividend Declared / Number of Shares Outstanding ₹

Corporate Actions, Dividends & Governance

Dividend Trap

A share whose high dividend yield reflects a falling price and an unsustainable payout rather than attractive income.

Test: the yield is elevated because the price fell, and the dividend exceeds free cash flow or is funded by borrowing qualitative

Corporate Actions, Dividends & Governance

Dividend Yield

The annual dividend per share expressed as a percentage of the share price.

Dividend Yield = Annual Dividend per Share / Market Price per Share x 100 %