Does anyone know of an instance where a company paid its dividend in product instead of cash or stock?
Dividends are usually paid with cash or stock on a quarterly basis. It is permissible to pay a dividend with “property”, i.e. a product the company manufactures or even a service it provides. Anyone know of such an instance? When and what if you know.
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I don’t know if it’s possible, but if it is I’ll buy stocks in a company that makes huge plasma TV.
No, I have never heard of that. If that is what the company is trying to do I would think they are trying to take a cheaper way out. There is markup on products, so if they are giving it to you for the sale value they are really only paying out half of what they should. I could be wrong, but something about that just doesn’t seem right.
Yes and No. I once owned stock in a company Panmersa. PNMS. And they promised to give 1 square meter of protected rainforest for each 100k shares you owned. With a estimated value of 40$ plus per square meter. But from what I hear most share holders are STILL waiting for the land divy. I guess from what I hear supposedly certain brokers are not cooperating. It was a very exciting idea that seemed to have flopped though.
I haven’t received one myself, but I’ve learned about them in Finance and Tax courses. What you are talking about is a dividend “in kind”. Let’s say they give you, a shareholder, a car or a computer, securities in another company, or, products, as you’ve noted – it is still considered a dividend.
This type of dividend is rare. I would tend to wonder about the cash flow of the company in question (why did they choose to issue this type of dividend, and why didn’t they just sell the property and issue you a cash dividend)?
Here is an example of one:
http://www.thefreelibrary.com/Counsel+Corporation+Declares+Dividend+in+Kind+of+American+HomePatient…-a061368007
In this case, the company in question wasn’t able to sell the shares in question, and so decided to distribute them to the shareholders (gee thanks!).
Another one:
http://www.thetimesharebeat.com/archives/2001/fin/fndec52.htm
Offers a 25% discount off a purchase of a cruise shares unit
Both of these Gold mining companies have talked about paying dividends in Gold or cash in the past, however I don’t think they have done it.
GOLD Corp:
http://finance.yahoo.com/q?s=gg
DRDGOLD Ltd. (DROOD) This company just had a 10 for 1 reverse stock split and has not made enough profit to pay a dividend for a number of years.
However, one of the unlisted officers of the company is a former international banker named James Turk who has founded, in 2001, a very successful on line, Gold/Silver/banking type of business, with domicile in the Island of Jersey, called Goldmoney, please see way below.
http://finance.yahoo.com/q?s=DROOD
Link to Goldmoney:
http://www.goldmoney.com/
I have a Goldmoney holding account & have enjoyed about an annual 24% gain over the last 6 years. It would be possible to recieve physical Gold/Silver or have physical stored by VAT Ltd {England} if dividends are ever converted into Gold/Silver by the mining companies, in the future.
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