In calculating a corporation's Current Earnings and Profits (E&P), nontaxable or tax-exempt income is added to the taxable income for the tax year. Current E&P, if not paid out, transitions into Accumulated E&P. Distributions are first taken from current E&P, and then from accumulated E&P. These distributions are taxable to shareholders to the extent of current and accumulated E&P.
A method of buying and selling stocks around their ex-dividend dates to collect the dividend and potentially make a small profit on the trade.
A tax deduction allowed to a corporation owning shares in another corporation for the dividends it receives. The deduction is often 70%, but in some cases, it may be as high as 100% depending on the level of ownership the dividend-receiving company has in the dividend-paying entity.
The total of the gross dividends paid by a company in a year divided by the total number of ordinary shares on which the dividend is paid.
Gross dividend yield represents the annual dividend income received from a security as a percentage of its current market price before the deduction of any taxes or charges.
