Accrued Dividend

Accrued Dividend
An accounting term referring to the balance sheet item that accounts for dividends that have been declared but not yet paid to shareholders. Accrued dividends are booked as a liability from the declaration date and remain as such until the dividend payment date.

Accrued dividends should not be confused with accumulated dividends, which refer to dividends due to holders of cumulative preferred stock.

There are no accounting rules that mandate a time frame in which the accrued dividend entry should be recorded, though most companies usually book it a few weeks before the payment date. After the dividend is declared, it becomes property of the record-date shareholder and is considered separate from the stock. This separation allows the shareholders to become creditors of the company, due their dividend payment, should a merger or some other corporate action occur.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • accrued dividend — /əˌkru:d ˌdɪvɪ dend/ noun a dividend earned since the last dividend was paid …   Dictionary of banking and finance

  • accrued dividend — noun : a dividend earned or assumed earned at a specified rate on cumulative preferred stock but not declared or paid * * * an accumulated unpaid dividend on preferred stock …   Useful english dictionary

  • accrued dividend — an accumulated unpaid dividend on preferred stock. * * * …   Universalium

  • accrued dividend — A share of net earnings declared but not yet paid as a dividend …   Black's law dictionary

  • accrued dividend — A share of net earnings declared but not yet paid as a dividend …   Black's law dictionary

  • accrued dividend — A dividend which became due and has either been paid or not paid. 19 Am J2d Corp § 809 …   Ballentine's law dictionary

  • dividend — Synonyms and related words: accrued dividends, accumulated dividends, allotment, allowance, avails, balance, big end, bigger half, bit, bite, bonus, box office, budget, capital gains, carrot, cash dividend, chunk, cleanup, clear profit,… …   Moby Thesaurus

  • dividend stripping — bond washing The practice of buying gilt edged security after they have gone ex dividend (see ex ) and selling them cum dividend just before the next dividend is due. This procedure enables the investor to avoid receiving dividends, which in the… …   Big dictionary of business and management

  • Preferred Dividend — A dividend that is accrued and paid on a company s preferred shares. In the event that a company is unable to pay all dividends, claims to preferred dividends take precedence over claims to dividends that are paid on common shares. Preferred… …   Investment dictionary

  • ДИВИДЕНД КУМУЛЯТИВНЫЙ — ACCRUED DIVIDENDДивиденды на акции (привилегированные и/или простые), как и проценты по облигациям, обеспеченным и необеспеченным, не начисляются на определенные даты платежей в соответствии с практикой рынка ценных бумаг. Дивиденды не имеют… …   Энциклопедия банковского дела и финансов

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”