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[Razor1911]

When a company makes profit in business, they tend to give away two types of promotions to its employees/stake holders. One is dividend and the other one is bonus.

All the stake holders in a particular firm has some share in the company. When dividend is given, the value of the stock will remain same, and an additional percentage of extra share is credited to shareholders account, thus increasing their stake. Where as in bonus, only cash incentives is provided. Which one you prefer in this case? I think dividend is more preferable because it will appreciate with time, but cash once paid will not grow like dividends.

 

[Niftyicon]

I will also prefer dividends over bonus. Are dividends not paid to the shareholders of the company? I think it is better than just receiving bonuses.

 

[Razor1911]

I will also prefer dividends over bonus. Are dividends not paid to the shareholders of the company? I think it is better than just receiving bonuses.

Dividends only paid to shareholders. Those already holding the shares receive additional shares. Mostly bonuses are given to those, who don't have share in the company.

 

[BullyMaguire]

Bonus since most bonuses are given with no strings attached. Unlike dividend you need to contribute and what you will given will be based on how much your contribution is

 

[Razor1911]

Bonus since most bonuses are given with no strings attached. Unlike dividend you need to contribute and what you will given will be based on how much your contribution is

The contribution does not necessarily mean you need to buy shares. There are some companies, which provides equity share in the company to its every employee. I do agree with that point that bonus doesn't need any share in company and paid in real liquidity.

 

[BullyMaguire]

The contribution does not necessarily mean you need to buy shares. There are some companies, which provides equity share in the company to its every employee. I do agree with that point that bonus doesn't need any share in company and paid in real liquidity.

Yeah there are some companies like that.. but they are rare i guess and bonuses are always good to be given to good employees so it's a win win for both

 

[Razor1911]

Yeah there are some companies like that.. but they are rare i guess and bonuses are always good to be given to good employees so it's a win win for both

You are too correct, when the cash bonus is given, the decision lies with the individual whether he can reinvest the amount in shares or spend in other sites. Unlike in dividends you can't cash out money.

 

[Manish200]

I personally prefer dividend over bonus. The dividend is given on the amount of stakes a stakeholder possess when can be more then the bonus because bonuses are mostly a certain fixed amount of money they give. Dividend can add up a lot of value according to the shares we have.

 

[Niftyicon]

You are too correct, when the cash bonus is given, the decision lies with the individual whether he can reinvest the amount in shares or spend in other sites. Unlike in dividends you can't cash out money.

Is it possible to be rewarded with shares in the company as a bonus? I mean after the company has had a good year or quarter and set to reward its employees.

 

[happymolly]

Form my own prospective neither of them is bad, if you are a shareholder in that company then I recommend taking a dividend but if not just take the bonus at list you a share of the profit that what matters

 

[Ridorz]

The both share and bonus are good s

 

[Corzhens]

This is not to brag but in our company we have 4 months of bonus every year. For senior officers (vice president and up) there is profit-sharing aside from the stocks that the company grants every 2 years. That is the reason why I had stayed for long in my job.

 

[delnovem]

If you need an answer to such questions. It's very obvious which is better. You can't compare the amount given to stakeholders and bonus given to employee. The stakeholders dividend will be much bigger than the bonus given to employee.

 

[Teegold]

Me I prefer a dividend. At my mom's place of work, every year they receive dividends asba sign of appreciation for their efforts all year long.

 

[a_jerobon]

Personally, I prefer dividends to bonuses. They are more profitable because they grow in value with time. I agree with you that cash incentives are just given once and won't have much long term value.

 

[07Trinity]

When a company makes profit in business, they tend to give away two types of promotions to its employees/stake holders. One is dividend and the other one is bonus.

All the stake holders in a particular firm has some share in the company. When dividend is given, the value of the stock will remain same, and an additional percentage of extra share is credited to shareholders account, thus increasing their stake. Where as in bonus, only cash incentives is provided. Which one you prefer in this case? I think dividend is more preferable because it will appreciate with time, but cash once paid will not grow like dividends.

Will it be bad if the company gives both,well dividends cannot be likened to bonus,bonus is more like rewarding someone out of your own free will,you are not compel to do it.

 

[ashim kate]

To be honest this might be a very tough call because there are some kinds of investments that I will prefer to be paid rewards In bonuses and there are some that I will like to be paid in dividends. Overall believe that the company should do what is fair for both itself and also the stakeholders.

 

[ELSA-ELI]

I have heard about this but am not just privy to full information.I know you can invest in government bonds but I do not think you can own shares in a government ministry.Maybe Parastatals.Why I am saying this is that dividends profits from shares that you own.If the shares keep on growing then your level of influence in that company and grows to the point that you might buy it off if you hold majority shares.So how can that be for government owned businesses?

 

[Wisdom01]

Personally, I prefer dividends to bonuses. They are more profitable because they grow in value with time. I agree with you that cash incentives are just given once and won't have much long term value.

dividend could fetch more interest , because I actually do see bonus as one time benefit , but dividend to me actually offers more benefits and some people actually dont know the importance of it ,they could buy shares in a particular company and start getting dividend in return

 

[Horia_10]

Divided is given to all investors in a company or all workers and bonus is given only to employees that do a significant and out of mind effort so it is awarded based on performance and both are different things so can't be called equal and both are awarded differently as well to any individual