ETFs may pay a cash dividend on a quarterly basis. Each share will receive a specific amount, so the more shares you own, the higher your total payout. But not all funds offer dividends, even if they do provide a cash payout. For example, fixed income ETFs technically pay out interest...
Lisa Pallavi Barbora
Some mutual funds purchase stocks before dividend payments to artificially increase their dividends, which we call "juicing." Funds paid more than twice the dividends implied by their holdings in 7.4% of fund-years examined. Juicing is associated with larger inflows, and is more common among funds...
The results show that institutional ownership has a positive impact on the dividend payout policy of Islamic mutual funds in both countries, which is in line with the assumption of the agency theory. Therefore, asset management firms need to encourage higher institutional ownership to increase ...
The full form of IDCW in mutual funds is ‘Income Distribution Cum Capital Withdrawal’. This was formerly known as ‘Dividend Option’ in mutual funds where investors can opt for dividend payout or dividend reinvest. Therefore, in April 2021, SEBI introduced this name change where mutual fund...
SEBI has also stipulated that all the existing and proposed Schemes of Mutual Funds shall name / rename the Dividend option(s) in the following manner: Option / Plan (existing) New nomenclature Dividend Payout Payout of Income Distribution cum capital withdrawal option Dividend Re-investment Rein...
We examine investor demand for dividends in the context of equity mutual funds. We find that some funds trade in and out of dividend-paying stocks to increase their dividend yield, consistent with fund investors having a desire for dividends. We refer to this strategy as “juicing.” This beh...
The NAV falls by the amount of the dividend distributed and/or bonus issued. The terms ex-bonus and ex-dividend often are used synonymously. What are the risks associated with investing in mutual funds? Mutual Funds do not provide assured returns. Their returns are linked to their performance...
These companies are characterized by low price-to-earnings (P/E) ratios, low price-to-book ratios, and dividend yields. Meanwhile, growth funds look to companies with solid earnings, sales, and cash flow growth. These companies typically have high price-to-earnings ratios and do not pay ...
Value fundsinvest in stocks their managers see as undervalued while aiming at long-term appreciation when the market recognizes the stocks' true worth. These companies are characterized by low price-to-earnings (P/E) ratios, low price-to-book ratios, and dividend yields. Meanwhile, growth funds...