Investopedia

Continue to Site »

Illegal Dividend

Filed Under » , ,
Dictionary Says

Definition of 'Illegal Dividend'

A dividend declared by a corporation that is in violation of its charter and/or of state laws. Should such a dividend be declared, the company's board of directors can be sued by its shareholders and creditors; the company may also face prosecution.
Investopedia Says

Investopedia explains 'Illegal Dividend'

Many states prohibit dividend payments from the capital surplus account. Dividends are generally paid out of net income or retained earnings. Illegal dividends may significantly weaken the financial position of the company and expose its creditors to a greater degree of risk.

Articles Of Interest

  1.

    The Power Of Dividend Growth

    Dividends may not seem exciting, but they can certainly be lucrative. Learn more here!

  2. Dividend Facts You May Not Know

    Discover the issues that complicate these payouts for investors.

  3. Why Dividends Matter

    Seven words that are music to investors' ears? "The dividend check is in the mail."

  4. How Dividends Work For Investors

    Find out how a company can put its profits directly into your hands.

  5. How And Why Do Companies Pay Dividends?

    Explore arguments for and against company dividend policy, and learn how companies determine how much to pay out.

  6. Investing In REITs Instead Of Property

    Learn why this one particular REIT is a better investment than holding physical property in your retirement portfolio.

  7. Build A Dividend Portfolio That Grows With You

    Balance risk and return to produce adequate income despite inflation.

  8. Is a dividend reduction a signal to sell?

    Although a dividend reduction is generally viewed as a signal to sell, the decision is not as clear-cut as if the dividend were to be eliminated altogether, which would be an unequivocal sell ...

  9. How To Play Dividends During The Fiscal Cliff

    Shifting to qualified investment vehicles and other viable investment strategies could help invstors defer, avoid or minimize the tax hike.

  10. Introduction To Dividends

    Investing in dividend-paying stocks can be an effective method of building long-term wealth.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  2. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  3. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  4. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  5. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  6. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
Trading Center
Array ( )
taggroups(for debug only):
Array ( [0] => Investing [1] => SEG (Investors) ) time:16ms