THE BASICS: WHAT IS A DIVIDEND?
The distribution of a firm’s revenues among the shareholders which are determined by the company’s board of directors is termed as a dividend. Mutual shareholders of the firms that pay dividends are only eligible for the duration of owning the stock before the ex-dividend date. The dividend is paid through cash or in the form of some extra stock. In simpler words, it can be defined as the distribution of a corporation’s profit gain among the eligible shareholders. These payments are made only through companies that are listed publicly and are considered as a form of reward to the investors as they invested high value into the working of the organization.
FIRMS THAT PAY DIVIDEND
Large-scale firms that are established in the market and have a higher chance of earning good profit often pay the best dividends to the eligible shareholders. With a motive to increase the shareholder’s wealth for the mutual growth of them and the firm’s, regular dividend payouts are offered in the following industrial sectors –
- Oil and Gas
- Financial sector
- Basic materials
- Utilities
- Health and pharmacy
Not only this, firm’s having a master limited partnership (MLPs) and real estate investment trusts (REITs) are also considered as high dividend payers as their roles allow potential shareholders and traders to invest in the development. On the other hand, there are a majority of companies that do offer dividend payments, for example, Startups and firms in the biotech sectors do not allow access to regular dividend payments. The reason being, these firms are in the early stage of development and invest highly in research, development, operational activities etc. which leaves them with insufficient funds to issue dividends.
WHAT IS BIVIDENTS AND WHO DEVELOPED THIS CONCEPT?
Bividents (Dividend in Bitcoin) is a form of crypto-based financial good that has been recently added to the global bitcoin market, emerging as the most progressive and updated good on the platform. The concept was developed by a blockchain firm named BTCS. TCS is a US-based company that is traded publicly and functions around blockchain technology and its infrastructure. The firm recently announced the first-ever payable dividend in Bitcoin by a Nasdaq-listed company. This Bividend stock has witnessed an increase by more than 44% on January 5 with a value of $4.36 from $4.45 (as of January 7). Allowing its users to accumulate crypto portfolios based on the insights, performance, and exchange, a digital asset medium is also being developed by BTCS which is planned to launch in 2022.
One of the most remarkable advantages of using dividends in the Bitcoin era is the elimination of the gap between the traditional market and the rising crypto sector. The technological advancement further acts as a building foundation for the industry, allowing more and more innovation to take place.
The firm, BTCS also offers the payout of $0.05 per share in bitcoin, depending upon its market cap and ex-dividend date. The payment will be done in the form of bitcoin, however, investors who do not wish to receive the payout in the form of bitcoin will get it in the form of cash of $0.05 dividend. BTCS has been successfully building innovative technologies in the blockchain sector since 2014.
WHY BIVIDENTS?
The concept of bividend was introduced to offer a reward to the long-time shareholders for their constant support to the organization’s growth. It is also referred to as a means to facilitate monetary liberty by offering direct ownership of bitcoin and other crypto-assets. Apart from this, BTCS shares can be traded easily on Nasdaq exchanges. No exchange account is needed in order to receive funds. One must have a valid bitcoin wallet address where they will be receiving the dividends. Known as a return of capital distribution, bividends, and cash bividends both can be analyzed in a detailed format through the dividend tax information page.
SUMMARY
With the progress in multiple sectors, the introduction of dividends in the Bitcoin era promises enhanced user applications and new functions. The BTCS firm is in a growth phase and is evaluating the rightness of bividends in the near future. The bitcoin era is expanding, benefitting more and more sectors and establishing a more elevated position in the global era. If you are interested in crypto trading just visit the website https://desire-crypto.com/ and create your free trading account.
