Dividend history refers to a comprehensive record of the dates on which dividend was declared by a particular company. Dividend history proves to be a useful device for a company to formulate its dividend policies. Dividend is usually calculated on a per share basis.
Dividend history of a particular company gives the investors a transparent idea about the trend of the distribution of dividends.Dividend history contains a variety of information. Information regarding annual dividends, interim dividends, payout ratio or the amount of dividend, all are available. Stock split details are also accessible.
The information is arranged in a chronological order so that it is easy to comprehend for the investors.The dividend history of a company provides details regarding the various dates that are associated with the declaration of its dividend.
These dates include the following:
Ex dividend date
If a company has been providing dividends to its shareholders on a regular basis, it is evident from its dividend history that the company has a sound financial backbone. On the other hand, if the dividend history of a company shows that the company has not been able to pay dividends on a regular basis, then it is also evident that the company does not have a strong financial background. By studying the NAV (Net Asset Value) and dividend history of a company, the investors are able to judge the financial strength of a company.
Dividend history mentions in which form or type the dividend was distributed, for example the dividends were distributed in cash form or in the form of bonus shares or additional shares.
Dividend history does not necessarily indicate towards the dividend payments in the future. Some of the companies announce their dividend policies with the help of their dividend history.