Equalizing Dividend

DEFINITION of 'Equalizing Dividend'

An additional dividend paid to eligible stockholders when their divided income is reduced due to a change the board of directors makes to the dividend payment schedule.

BREAKING DOWN 'Equalizing Dividend'

Equalizing dividends are paid to shareholders to compensate them for any dividend income lost from the change.

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RELATED FAQS
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  3. How are dividends usually paid out?

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  4. Are dividends considered an asset?

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