In this lesson, explore the various dividends that corporations can issue to their shareholders, as explained by Nick Palazzolo, CPA. Dive into the intricacies of cash, property, and stock dividends, and learn about liquidity and solvency tests which may restrict dividend payouts. Additionally, grasp the four key dividend-related dates: declaration, ex-dividend, record, and payment. Nick delves into the accounting treatments and journal entries for different types of dividends, and distinguishes between large and small stock dividends and their valuation. He also clarifies the difference between stock dividends and stock splits, emphasizing the impact on a company’s market cap and stockholder equity. This thorough examination of dividends is essential for understanding how companies reward investors and manage their retained earnings.
Lesson: Types of Dividends
In this lesson, explore the various dividends that corporations can issue to their shareholders, as explained by Nick Palazzolo, CPA. Dive into the intricacies of cash, property, and stock dividends, and learn about liquidity and solvency tests which may restrict dividend payouts. Additionally, grasp the four key dividend-related dates: declaration, ex-dividend, record, and payment. Nick delves into the accounting treatments and journal entries for different types of dividends, and distinguishes between large and small stock dividends and their valuation. He also clarifies the difference between stock dividends and stock splits, emphasizing the impact on a company’s market cap and stockholder equity. This thorough examination of dividends is essential for understanding how companies reward investors and manage their retained earnings.
Updated: Oct. 20, 2021 Create an account