To determine the amount of dividends due for one preferred or ordinary share, use a simple calculation method, substituting into it the current values of the indicators of the financial condition of the joint-stock company in a certain period for which dividends are paid.
It is necessary
- - knowledge of the amount of total profit, the amount of tax deductions, the share of net profit;
- - the level of payments on preferred shares;
- - the number of preferred and ordinary shares.
Instructions
Step 1
Dividend - a part of the profit of a joint-stock company intended for payment to shareholders on a per share basis. The payment of dividends is possible only after all payments and taxes to the federal and local budgets have been paid, the production development fund has been replenished, and the reserves have been replenished. Income varies for common stocks, while for preferred stocks it is fixed.
Step 2
The payment of dividends is provided according to different schemes: quarterly, once every six months, once every nine months or once a year, which is determined by the policy of the joint stock company. The profit for the payment of dividends is distributed according to the number of shares and their types. Payments on preferred shares are made first, and only after that dividends on ordinary shares are paid. The amount remaining after the payment of dividends on preferred shares is intended for the payment of dividends on ordinary shares.
Step 3
The calculation of the amount of dividends begins with the calculation of the amount of the net profit of the joint-stock company (Pp). It is calculated as the difference between taxable profit (Np) and the amount of tax deductions from profit to the budget (Npr):
Чп = Нп - Нпр (monetary units).
Step 4
The charter of the joint-stock company determines what share of net profit (NPPd,%) is directed to the payment of dividends. The total amount of dividends (SD) is calculated as follows:
SD = Chp * DPhPd / 100 (monetary units).
Step 5
From the total amount (SD), fixed amounts of dividends are paid on preferred shares (CPR), which are calculated as the product of the par value of a preferred share (Tsnompr) by the level of payments on them (Uvpr,% to par), and by the total number of preferred shares (Kpr):
Ref = Kpr × Tsnompr × Uvpr / 100 (monetary units).
Step 6
The payment for a single preferred share is, respectively:
Tsnompr × Uvpr / 100 (monetary units).
Step 7
To pay dividends on ordinary shares (Cdo), the amount remaining from the total amount of dividends after the payment of dividends on preferred shares (Spr) is intended:
Sdo = Sd - Spr (monetary units).
Step 8
The payout for a single ordinary share is, respectively, Cdo / Co, where Co is the number of ordinary shares.
