How are dividends paid?

2 min. readlast update: 11.07.2023

Woxa provides information on dividend distribution in 2 categories:

1. Types of Dividend Payments.

- Cash Dividends. 

  • This is the most commonly used format, where dividends come from the company's profits or accumulated profits.
  • The advantage is that paying dividends can build confidence among shareholders, showing that the company is financially sound and has a strong performance. Shareholders trust that the company will continue to grow alongside its business expansion." 

- Equity Stock Dividend.

  • It involves increasing capital by issuing common shares and then distributing dividends in the form of these shares, based on a predetermined ratio. 
  • The advantage : Many investors prefer receiving dividends in the form of stock because the shares received may appreciate in value, potentially yielding a better return. This added value from the stock dividend can be more significant than receiving cash dividends. It's suitable for investors who have confidence in the long-term growth of the company or for those who don't have an immediate need for cash.

2. Timing of Dividend Payments.

  • Monthly = (1M)
  • Quarterly = (3M)
  • Semi-Annually (6M)
  • Annual = (12M)
  • Trailing Twelve Months = (TTM)
  • Other = (O)
  • Interim dividend payment = (I)
  • Final dividend = (F)
  • Bonus = (B)

You can access the table Woxa Stocks Calendar or Trading Hours and Market Events to check the dates and times for dividend payments.   

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