Extra Dividend

外汇网2021-06-19 16:13:01 195

A non-recurring distribution of company assets, usually in the form of cash, to shareholders which is of unusually large size or different date of issue compared to normal pidends paid out by the given company. Also referred to as a "special pidend".

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Taobiz explains Extra Dividend

Generally, extra pidends are declared following exceptionally strong company earnings results, as a way for a company to distribute exceptional profits directly to shareholders. Extra pidends can also occur when a company wishes to make changes to its financial structure or to spin-off a subsidiary company to its shareholders. For example, GenTek Inc issued a special cash pidend of $31 per share paid on Mar 16, 2005, in order to restructure towards a more debt-based financing mix.

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