Online-exclusive visual guides
1. The three dividend dates — who does what
2. Dividend type selector — what leaves, what changes
| Type | What shareholders get | Measured at | Total equity effect |
|---|---|---|---|
| Cash dividend | Cash | Face amount | Decreases |
| Property dividend | Non-cash assets | Fair value | Decreases |
| Share dividend — small (< 20%) | More of the corp's own shares | Fair value → RE to Share Capital + Premium | No change — pure reclassification |
| Share dividend — large (≥ 20%) | More shares | Par value → RE to Share Capital only | No change |
The 20% line: below it, capitalize retained earnings at FAIR VALUE; at or above it, at PAR. Share dividends never touch assets — total equity is identical before and after.
3. Preference share dividend traits
Cumulative: skipped years pile up as dividends in arrears — payable in full before ordinary gets anything (arrears are disclosed, not accrued as liability until declared).
Noncumulative: a skipped year is lost forever.
Nonparticipating: preference gets its fixed rate, ordinary takes all the rest.
Participating: after both classes get the basic rate, preference also shares in the excess (fully or up to a stated cap).
Practice tools
Tool 1 · Preference dividend allocator
Cumulative? In arrears? See exactly how a declaration splits between preference and ordinary (nonparticipating).
Tool 2 · Share dividend valuation check
A corporation with 100,000 shares (₱10 par, fair value ₱45) declares a 15% share dividend. Compute the amount of retained earnings to be capitalized, then check.