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DEFINITION of 'Extra Dividend'

A non-recurring distribution of company assets, usually in the form of cash, to shareholders which is of unusually large size or different date of issue compared to normal dividends paid out by the given company. Also referred to as a "special dividend".

BREAKING DOWN 'Extra Dividend'

Generally, extra dividends are declared following exceptionally strong company earnings results, as a way for a company to distribute exceptional profits directly to shareholders. Extra dividends can also occur when a company wishes to make changes to its financial structure or to spin-off a subsidiary company to its shareholders. For example, GenTek Inc issued a special cash dividend of $31 per share paid on Mar 16, 2005, in order to restructure towards a more debt-based financing mix.

  1. Cash Dividend

    Money paid to stockholders, normally out of the corporation's ...
  2. Cash-And-Stock Dividend

    A corporation distributing earnings to its shareholders as both ...
  3. Property Dividend

    An alternative to cash or stock dividends. A property dividend ...
  4. Forward Dividend Yield

    A forward dividend yield is an estimation of a year's dividend ...
  5. Interim Dividend

    A dividend payment made before a company's AGM and final financial ...
  6. Accrued Dividend

    An accrued dividend is a liability that accounts for dividends ...
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  1. Are dividends considered assets?

    Find out why dividends are considered an asset for investors, but a liability for the company that issued them. Learn the ... Read Answer >>
  2. How do dividends affect retained earnings?

    Find out how distribution of dividends affects a company's retained earnings, including the difference between cash dividends ... Read Answer >>
  3. How and when are stock dividends paid out?

    A dividend is determined quarterly after a company finalizes its income statement. Dividends are paid either by check or ... Read Answer >>
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