Dividend example sentences

For example, while the dividend on preference shares is not tax deductible, interest paid on debentures and loan is tax deductible and may, therefore, be preferred by organisations seeking tax advantage.The return on shares is known as dividend while the return on debentures is called interest.In addition, another statement called Profit and Loss Appropriation Account is prepared to record various appropriations of profits like transfer to reserve and provision for dividends.While dividends are tax free in the hands of shareholders, the company has to pay tax on dividends declared at the prescribed rate which is termed as 'Corporate Dividend Tax' and a provision has to be made thereof.This also helps comparison with other firm s to ascertain its reasonableness and capacity to pay dividend.A company generally does not distribute all its earnings amongst the shareholders as dividends.ADS efforts to set up Grain Banks, to facilitate replication through other NGOs and to influence the Government s policy on food security are thus paying rich dividends.Other items of revenue common to many businesses are: commission, interest, dividends, royalities, rent received, etc.On the other hand capital reserve is created primarily out of capital profit, which do not arise from the normal operating activities of the business and are not available for distribution as dividend.The payment of dividend is an appropriation out profits, whereas the payment of interest is a charge on profits and is to be paid even if there is no profit.As the dividend on these shares is to be paid only when the company earns profit, there is no assured return for the investors.The rate of dividend on preference shares is generally higher than the rate of interest on debentures.The ratios include Gross Profit ratio, Operating ratio, Net-profit-ratio, Return on investment (Capital employed), Earnings per Share, Book alue per Share, Dividend per Share, and Price Earning ratio.The general practice is to declare the dividend for an accounting year at the annual general meeting of the company while presenting the Annual Report (including Financial Statements) for approval, and it is shown as proposed dividend in the appropriation part of the profit and loss account (debit side) and so also in the balance sheet on the liabilitieis side under the heading 'Current Liabilities and Provisions'.Trade in services denoted as invisible trade (because they are not seen to cross national borders) includes both factor income (payment for inputs-investment income, that is, the interest, profits and dividends on our assets abroad minus the income foreigners earn on assets they own in India) and non-factor income (shipping, banking, insurance, tourism, software services, etc.