Liquidating dividend

From Wikipedia, the free encyclopedia

Liquidating dividend is a payment of a dividend to stockholders that exceeds the company's retained earnings. Once retained earnings is depleted, capital accounts such as additional paid-in capital are decreased to make up for the remaining dividend to be paid to stockholders. When a liquidating dividend occurs, it is considered to be a return of investment instead of profits.

[edit] See also

• Dividend cover
• Dividend tax
• Dividend units
• Dividend yield
• Special dividend

[edit] External links

• ACCOUNTING FOR LIQUIDATING DIVIDENDS (US GAAP)
• Atlantic Coast Entertainment Holdings: Liquidating Dividend Offers a Profit
• AMC Financial Holdings, Inc. Announces Liquidating Dividend
• Dividend Information A searchable database of dividend payouts and history for all stocks.