Since so many investors count on receiving dividends from these types of stocks, the companies that offer them are, more often than not, pretty conservative when it comes to how they conduct their operations. Because they pay dividends to expectant shareholders, these companies may be more diligent with their investments, business decisions, asset management and the creation and marketing of their various products.
On this date the directors issue a statement similar to the following:" On November 15, 1984, the directors of the XYZ corporation met anddeclared a regular quarterly dividend of 50 cents per share, plus an extradividend of 25 cents per share, payable to the holders of record on December15, payment to be made on January 2, 1985."
Holder-of-record date: At the close of the business on the holder-of-recorddate, December 15, the company closes its stock transfer books and makesup a list of the shareholders on that date.
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Investors choosing the dividend-paying stock route can also choose to back companies that are based in the United States, but do business in several other nations, giving them global exposure. For example, people drink Coca-Cola (symbol ) in America of course—but they also drink it around the globe in Albania, Algeria, Angola, Antigua, Argentina, Armenia, Australia, Austria and scores of other nations. Investors take note. Companies with a worldwide presence aren't as severely impacted when a single nation enters a recession or faces a more severe economic downturn.