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The group will pay a final cash dividend for 2010 of 2.5p, giving an aggregate declared dividend for 2010 of 5.5p per share.
It is alleged that on October 8 , 1975and October 16 , 1975 plaintiffs demanded that the directors rescind the previously declared dividend in DLJ shares and take steps to preserve the capital loss which would result from selling the shares.
If the stock is purchased between the date of record and the date the dividend is to be paid, the buyer does not receive the recently declared dividend, and the stock is said to sell ex dividend, or "without dividend".
Results were in-line with my, and other analysts' expectations: Earnings per share (EPS) of 14 cents, and a declared dividend of 14 cents as well.
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Taylor Wimpey declared dividends of slightly less than £500m during the same period.
Section 1. Power of board to declare dividends.
The board establishes dividend periods and declares dividends as permitted by the Act and applicable regulations.
If thereafter the company finds itself in funds beyond current needs it may declare dividends out of such surplus or undivided profits; otherwise it may go on for years conducting a successful business, but requiring more and more working capital because of the extension of its operations, and therefore unable to declare dividends approximating the amount of its profits.
"Unlike reported earnings, cash earnings are available to management to reward shareholders by doing things like paying down debt, declaring dividends or buying back shares".
The extra incentive to declare dividends will weaken balance sheets and increase borrowing, which will also have an upward push on interest rates.
"Usually, boards of directors won't declare dividends or certainly won't increase them if they feel that the companies need those resources for other purposes," said Robert Zagunis, chairman of the investment committee at Jensen Investment Management in Lake Oswego, Ore.
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