What is a Cash Dividend?
Cash Dividends are a way of allocating a portion of American AgCredits net income to its member borrowers. Q: How does the Association decide to pay a cash dividend? A: At the end of each fiscal year, American AgCredits Board of Directors determines whether to distribute some or all of the Associations net income after all expenses have been paid. The Board can either elect to retain the net income to strengthen the Associations capital position or distribute the net income in the form of a cash dividend. Q: Who Qualifies To Receive A Cash Dividend? A: All borrowers who own capital stock in the Association qualify to receive cash dividends. However, the Board of Directors may exclude certain customers such as those with loans in default. Q: How Are Cash Dividends Calculated? A: The Board of Directors determines how much cash dividend-sourced earnings can be distributed while still retaining adequate surplus to fund future growth. Your cash dividend is based upon the average daily balan
A cash dividend is a cash payment that is extended to shareholders by the issuing company. Dividends are normally paid according to terms that are outlined in the bylaws of the corporation, unless the board of directors works with the shareholders to defer payments for a period of time. Generally, cash dividends are paid out of the profits earned by the corporation during the period cited, although it is possible for a cash dividend to be paid even when there is no net profit for the fiscal period under consideration. The actual cash distribution of the cash dividend will take place according to established procedures that are put in place at the time of that the shares of stock are issued. For many years, a cash dividend was paid through the use of a check issued by the corporation. The checks would be accompanied with supporting paperwork that would address the period of time covered by the amount of the dividend, providing the shareholder with information on how the face value of th
