Concept in Definition ABC

The word dividend has two references ...

On the one hand, at the request of the math, the dividend is the amount or number to be divided by another or another, as appropriate. In the division, one of the four arithmetic operations, what is sought is to know how many times the divisor is found contents in the dividendMeanwhile, the integer result of the division is called quotient. For example, if we divide 18 into 2, 18/2, 2 will act as a divisor and 18 as a dividend, while 9 will be the result of the aforementioned operation or the quotient.

From the example mentioned, the following also results: 18 = 9 x 2 + 0, that the dividend is equal to the quotient times the divisor plus the remainder.

And on the other hand, in the field of economy and of the finance, is called dividend to part of the profits of a company attributed to each shareholder, depending on the number of shares owned.

The company in question will pay the dividends corresponding to resources that come from the profits of the company for a certain time and may be made effective, either through cash or through shares of the company.

It will be the Assembly General Shareholders of the company which will have the power to decide when and in what way dividends are paid. For example, if it is decided that 1.25 pesos will be paid for each share, the shareholder who has the sum of 2,000 shares will receive 2,500 pesos as dividends. Although, if on the contrary, the decision is to distribute the dividends in shares and suppose that a remuneration of a share is established For every 60 shares owned, the shareholder indicated in the previous example will receive 33 Actions.

It should be noted that there are two types of dividends, the passive dividend what constitutes the credit owned by the company vis-à-vis the partner, on the part of the social capital that he duly subscribed and that therefore he undertook to disburse and the active dividend which will be the benefit obtained by the companies that have corporate bodies that agree in a timely manner that the benefits be distributed among the partners of the same.