Dividends are most often called a part of the total income, which is divided accordingly between the owners. In this case, the amount and procedure for payments is determined by a special council of shareholders. It is worth considering that interest can be received once a year or never. Indeed, in connection with its payment, the capital of the organization decreases.
There are several types of such payments. In particular, final and intermediate. The latter can be obtained throughout the year. In addition, dividends are paid in the form of shares or cash.
That is, such a payment is any profit that the participant received when distributing the firm's income after tax. Moreover, the profit should be divided among all owners.
Organizations do not always pay this percentage. Sometimes a certain part of the income remains on the balance sheet of the enterprise. There are several reasons for this. For example, a company strives for stability. That is, it tries to anticipate all kinds of market fluctuations.
Also, the need for investment affects the decrease in the amount of dividends. In particular, the manager may decide to charge a certain amount in case of various circumstances.
It should be borne in mind that dividends are subject to higher taxes. Therefore, due to the difference in calculus, they may decrease.
Payment
Often this payment corresponds to the share of the shareholder. In order to carry out the correct calculation, you need to know several values. For example, the share of net income, the amount of tax deductions and profit at this stage. In addition, information on the number of shares and the level of benefit payments will be required. Ordinary shares do not have a specified income, and the rest are paid out immediately.
Net income is calculated as the difference between taxable income and the amount from the budget. The charter of the organization indicates a certain part of the money, which is directed to the payment of interest. It is this number that is multiplied by the value of the net profit.
Limitation
In various situations, participants cannot receive their percentage. This is due to the lack of full repayment of the share capital. In addition, the appearance of signs of bankruptcy is also a limitation. If the value of assets is less than the price of the authorized capital, it is unlikely that it will be possible to receive dividends.
