Saturday, January 1, 2011

Available For Dividends

The term 'available for dividends' refers to the amount of cash that is able to be distributed as dividends (or retained in the company for investment and working capital requirements) after meeting all expenses, tax obligations, and any other obligations such as preference share dividends. Investors should monitor how much of this amount is actually paid out as dividends, and how much is retained; and of course what the company does with the earnings that are retained.

Synonyms: Distributable net earnings, Free cash flow

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