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.

  1. Board Of Directors - B Of D

    A group of individuals that are elected as, or elected to act ...
  2. Dividend

    A distribution of a portion of a company's earnings, decided ...
  3. Capital Dividend

    A type of payment by a firm to its investors that is drawn from ...
  4. Dividend Exclusion

    A rule that allows corporations to subtract dividends received ...
  5. Declaration Date

    1. The date on which the next dividend payment is announced by ...
  6. Holder Of Record

    The name of the person who is the registered owner of a security ...
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  1. Do mutual funds pay dividends?

    Depending on the specific assets in its portfolio, a mutual fund may generate income for shareholders in the form of capital ... Read Full Answer >>
  2. How often do mutual funds pay capital gains?

    The frequency with which mutual funds pay capital gains varies. However, funds that generate a profit within a given year ... Read Full Answer >>
  3. Can dividends be paid out monthly?

    Though it is more common for dividends to be paid quarterly or annually, some stocks do pay monthly dividends. Dividends: ... Read Full Answer >>
  4. Are dividends considered an asset?

    Whether dividends paid on stock are considered an asset depends on which role you play in the investment: the issuing company ... Read Full Answer >>
  5. Are dividends considered passive or ordinary income?

    Despite the fact that earning dividends requires no active participation on the part of the shareholder, they do not meet ... Read Full Answer >>
  6. Is dividend income taxable?

    Dividend income is taxable but it is taxed in different ways depending on whether the dividends are qualified or nonqualified. ... Read Full Answer >>

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