Which type of dividend is most likely to be used to distribute the revenue from a one-time sale of a large asset?
A) Regular cash dividend
B) Unusual dividend
C) Special dividend
D) Interim dividend

Question

Quizplus · Accepted Answer

A special dividend is a one-time payment made by a company to its shareholders, usually resulting from a large one-time sale of a significant asset. It is used to distribute the revenue generated from such sales as an incentive to shareholders and to enhance the company's share price. Regular cash dividends, on the other hand, are regular payments made by companies to their shareholders out of their earnings on a periodic basis. Unusual dividends and interim dividends are not typically associated with one-time sales of large assets but may be used for other purposes.

Which Type of Dividend Is Most Likely to Be Used