A dividend is a taxable sum of money declared by a company’s board of directors and given to its shareholders out of the company’s current or retained earnings. Dividends are usually given as cash (cash dividend), but they can also take the form of stock (scrip dividend) or other property. There is no guarantee that a company will make dividend payments in any given year or years.

The form of dividend distribution primarily depends on the type of the dividend declared. If it’s a pure cash dividend, you do not have an option to take up shares instead. However, if a cash dividend with a scrip option is declared, you can opt to receive more shares in the company. If you are paid your dividend in cash, you can ask your broker to reinvest the proceeds into First Capital Bank shares on your behalf.

The ownership of a company can be shared by many people and organizations. A share is a unit of ownership. When you own a share you become a part-owner (shareholder) of a company and you will have the right to receive any dividends paid on each share that you own, receive an electronic or paper copy or summary of the company’s annual report and financial statements as well as any other shareholder communications. You will also have the right to attend, ask questions and vote at general meetings of the company.

The share price will be influenced by a number of factors, some of which are outside the company’s control. The factors may include:

• the performance and prospects of the company or the industry in which the company operates;
• political, general economic, financial and stock market conditions;
• perceptions of investors about the above factors.

As with all listed shares, the share price of First Capital Bank on the Malawi Stock Exchange can go up or down. If you sell your shares, you may receive more or less than you originally paid for them.