Dividend Payout Method

1) Cash Dividend – which is the most attractive dividend payment to shareholders. It usually declare as x.0 sen per share will be distributed out as dividend. However, it may not necessarily be the case that declare how many sen will be distributed as dividend, instead, they will announce something like x% dividend per ordinary share. This require some computation as below:

Dividend Receive = No. of Share Hold in Lots X x% X Ordinary Share Par Value
For example, u hold 1000 shares, the company declare 6% dividend and its par value at RM0.10. Then, the dividend you will received is RM6 from the company.

2) Equity Dividend – this is another form of dividend payout method there the company distribute the dividend out in terms of share issues via bonus issue. This will distribute out in term of ratio of holdings. This require some computation as below:

Bonus Issues Received = 1000 X 1/4 = 250 shares
For example, u hold 1000 shares, the company declare 1 per 4 bonus issues. Then, the bonus issues you will received is 250 shares from the company.

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