DIVIDEND
  Definition
  
The distribution of corporate earnings to shareholders

  Calculation rule
  
Estimated dividends are provided by JCF Group and expressed in dividends per share.
JCF Group provides the median of the analysts' estimates dating from less than 75 days. When a company issues different types of shares JCF Group provides the estimates for the most traded instrument.

  Comment
  
The amount of dividends is proposed by the Board and submitted to the vote of the shareholders at the annual general meeting. Sometimes the net profit is not considered substantial enough to allow dividends distribution for a given fiscal year.
Small, fast-growing companies don't typically pay dividends. Investing in such companies means a higher level of risk and no short -term return on investment.
Nevertheless, in the long run, the investor could make considerable profit when selling his shares.

Dividend policy is a strategic component of financial communication: it has quite an influence on the market because it says something about the company's short -term financial health. For example, when a dividend is paid although the net income is down, it's a signal given to the market that the decrease is temporary.

  Reference
  
Dividend yield
Ordinary dividend
Pay out ratio
Retention ratio

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