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Investments glossary

Residual Dividend


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Quotes of the day:

Most people hew the battlements of life from compromise, erecting their impregnable keeps from judicious submissions, fabricating their philosophical drawbridges from emotional retractions and scalding marauders in the boiling oil of sour grapes.

— Zelda

A residual dividend is a dividend policy that companies use when calculating the dividends to be paid to shareholders. Companies that use a residual dividend policy fund capital expenditures with available earnings before paying dividends to shareholders. This means the dollar amount of dividends paid to investors each year will vary.


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