Many who don’t know what dividends are are hard at work all their lives, being busy all day. Also, a lot of people simply do nothing, surviving on benefits, and have a lot of free time. In addition, many people succeed in combining the desire to earn more money with their own laziness, but few people - without breaking the law. However, such a lifestyle (legal) is
a difficult task for the most intelligent and dexterous people of our time and, in turn, like all heavy puzzles has a large number of solutions. One option is a successful investment with further carefree receipt of dividends, interest, rental fees, etc. And the most popular and intriguing way of earning this kind is, of course, a game of chance with the shares of large and reliable companies, which came to our country along with a market economy, a large number of scams, oligarchs and other benefits of Western civilization.
What are dividends?
The conditions for the existence of factories, plants, combines and other enterprises in the modern market economy require more diligent financial flexibility from them. And various investment instruments help to provide it. The most popular of them is the way to attract funds from the external environment using the shares of the enterprise. Thus, people who have accumulated savings and are confident in the "strength" of a company can become part of it, being the owner of the shares of the company. And the company, in turn, will pay the depositors for their trust at a convenient time by paying them dividends. This scheme is one of the most effective ways to accumulate funds of the population and the opportunity for investors without overpayments to various financial intermediaries to get the greatest profit.
Economic interpretation
From a technological point of view, to the question of what dividends are and what is the order of their distribution, a more clear answer can be given by economic literature and generally accepted wording, which in turn states that a dividend is a part of an enterprise’s profit divided by shares or shares according to the result of economic period. Dividends are paid according to the remaining profit of the enterprise after tax deductions, expenses for the development of the enterprise and social needs, payments to the insurance and reserve fund, after budget and other fees. This procedure for the distribution of funds shall be agreed upon by the general shareholders meeting. The size of dividends, as a rule, has not been decided in advance, but it depends on the economic result of the enterprise’s activity over the past period. However, in addition to this method of calculating the size of payments, there are also dividends on preferred shares, the value of which is fixed in the established percentage of the nominal value of one share of the enterprise. When using this type of investment cooperation, the enterprise will be obligated to make payments to owners of preferred shares even in the absence of funds on the balance of profits after the necessary fees.
In order to receive dividends, you must be the owner of the shares of any company on the day of closing the register of shareholders. The assigned amount of payments is then transferred to the brokerage or bank account of the investor.
The world of big profits
Thus, to a modern person who has more in-depth knowledge of what dividends, stocks, bonds, speculation in securities and other ways of earning are, thanks to invested funds, new doors will open in a completely different world of new values and big profits.