Ask the experts: Dividends 101

Professor Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, takes us back to the basics of dividends and their role in investments

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What is a dividend and who has access to them?

When you buy a share of a company, you obtain the right to share in the profits of the company after all other stakeholders have been paid out. These profits are distributed in the form of dividends (or share repurchases). But this is contingent on the company choosing to pay out a portion of its cash flows.

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Published: 21 Jul 2020
Categories:
  • Wealth Management
Tags:
  • Tax
  • dividends
  • Covid-19
  • Ask the expert

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