Whenever one would invest in a company and become a shareholder, most companies would actually want to give dividends to that investor so that he’ll continue investing. For those who do not know what these are, basically they are extra bonuses that are given to these investors for being loyal. Now if one would want to know more, here are the six different types of dividend payments that one may encounter.

Now the first and most common kind would be cash dividends which are often given to those with common shares. Now if the directors of a company would want to give out cash dividends, they would first declare that they will be giving these bonuses and how much. After that, there will also be a date of payment which will be the date that the investor will actually receive it.

Another kind would be stock dividends which are the types that are not in the form of cash but in the form of shares of stock. Just like the cash dividends, there would be a declaration date as well as a date of payment wherein one would get his dividends. Now one very important thing to take note would be that only those who have common shares may avail of stock dividends.

Now just for one to understand how this works, it is best to look into an example of when one would invest in the stock market. For example, if one would invest in company A and company A would declare stock dividends, then he will be receiving shares of stocks. In the declaration, the board decided investors will give twenty five percent which is twenty five percent of the stocks one invested in originally.

The third on the list would be property dividends. Now instead of money types, the board of directors may want to give dividends that take the form of property instead. Now probably the most important thing to take note of here is that when it is handed over to the investor, it is always recorded in its fair market value.

Yet another kind would be the scrip dividends. This is usually issued whenever a company would want to issue dividends to its investors but do not have the funds at hand so they offer a promissory note that they will issue it at a certain date. It is pretty much something like an IOU.

The fifth and last kind would be the liquidating dividends which are often given by companies who are closing. Basically what the board would do is that they would be giving back the amount of the principal investment but in the form of dividends. This is done when the company is liquidating all of its assets before closing down which is the reason why the name is as such.

So basically, these are some of the kinds that one may have to know of. Now it is hard to further explain these kinds which is why it is good for one to attend seminars that would tackle this topic. In fact, there are a lot of seminars like these in the city of Florida which is the home of many investors and many small businesses.

If you would to know more about the types of dividend payments available, check out this link to The Declaration of Dependence Dividends in the Twenty-First Century. To order the book, come to http://financial-economics.org now.