Writer’s Note – Last week in my first of two articles, I explained what is a divided and how are dividends paid? This week in part two, I explore why are dividends paid and give further details.

 

WHEN ARE DIVIDENDS PAID?

Dividends are paid out on a schedule that the directors of a company decide. They also decide on the amount to be paid. The shareholders of a company, however, give the final approval for the total amount paid as dividends each year; usually via a vote at the company’s annual general meeting. Some companies pay out dividends every quarter (4 times a year/every 3 months). For example, NCB Financial Group (NCBFG) has made two dividend payment’s already for 2019 and have scheduled two more for this year. Other companies pay out a single dividend each year. There is no set rule on frequency; each company determines its own schedule. Sometimes when a company has a one-off situation, they may call a sudden, “special dividend”. Carreras Limited did this in 2012. After wrapping up its old pension scheme, the extra funds left over were paid out to shareholders as a “special dividend”.

http://www.jamaicaobserver.com/sunday-finance/dividends-a-simple-explanation_167497