CHAPTER 17

1. Dividend usually refers to cash paid out of earnings

2. If payment is made from sources other than accumulated or current
retained earnings, the term distribution is used
3. Distribution from earnings = dividend
4. Distribution from capital = liquidating dividend
5. Types of cash dividends
a. Regular cash dividends
i. Companies pay regular cash dividends 4 times a year
b. Extra dividends
i. Indicated that the extra part may or may not be repeated
in the future
c. Special dividends
i. Rare one-off event
d. Liquidating dividends
i. Usually from one or some of the businesses being
liquidated
6.