{"id":1217,"date":"2019-12-12T00:49:56","date_gmt":"2019-12-12T00:49:56","guid":{"rendered":"https:\/\/www.smartsims.com\/support\/?post_type=ht_kb&#038;p=1217"},"modified":"2022-11-10T22:18:08","modified_gmt":"2022-11-10T22:18:08","slug":"what-are-dividends-in-mikesbikes","status":"publish","type":"ht_kb","link":"https:\/\/www.smartsims.com\/support\/article\/what-are-dividends-in-mikesbikes\/","title":{"rendered":"What are Dividends in MikesBikes Introduction?"},"content":{"rendered":"\n<p>A dividend is a payment by your company to its shareholders to distribute a portion of its earnings as a return on their investment.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Why should I pay a dividend?<\/h4>\n\n\n\n<p>Dividends add to your company&#8217;s share price, to the value of the amount paid plus interest on past dividends. This total amount is known as your your company&#8217;s <a href=\"https:\/\/www.smartsims.com\/support\/article\/mikesbikes-shareholder-value\/\" target=\"_blank\" rel=\"noreferrer noopener\">Shareholder Value (SHV)<\/a> and is the main performance indicator in MikesBikes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How do I pay a dividend?<\/h3>\n\n\n\n<p>Dividends become available from Year 4 of the MikesBikes Introduction Simulation.<\/p>\n\n\n\n<p>You make your dividend decision under the Finance menu. Select Dividends from the left-menu then enter the amount you wish to pay per share:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"583\" height=\"342\" src=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2022\/11\/MikesBikes-Introduction-Dividend-Screen.png\" alt=\"\" class=\"wp-image-2176\" srcset=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2022\/11\/MikesBikes-Introduction-Dividend-Screen.png 583w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2022\/11\/MikesBikes-Introduction-Dividend-Screen-300x176.png 300w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2022\/11\/MikesBikes-Introduction-Dividend-Screen-50x29.png 50w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2022\/11\/MikesBikes-Introduction-Dividend-Screen-60x35.png 60w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2022\/11\/MikesBikes-Introduction-Dividend-Screen-100x59.png 100w\" sizes=\"auto, (max-width: 583px) 100vw, 583px\" \/><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\">How much of a dividend should I pay?<\/h4>\n\n\n\n<p>You should only pay a dividend once your company has maintained profitability for at least two years, and you have sufficient cash to make all of your desired decisions. At that point, a portion of excess cash can be used to pay a dividend.<\/p>\n\n\n\n<p>How much to pay can be determined by:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>How much cash you have available (see Live Forecast at the top right of screen).<\/li><li>How much you wish to risk paying a dividend if your forecasts for the year ahead don&#8217;t pan out.<\/li><li>The maximum dividend limit.<\/li><\/ol>\n\n\n\n<p>Information to help you make your decision is at the right of the Dividend screen:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"298\" height=\"277\" src=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2022\/11\/MikesBikes-Introduction-Dividend-Information.png\" alt=\"\" class=\"wp-image-2179\" srcset=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2022\/11\/MikesBikes-Introduction-Dividend-Information.png 298w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2022\/11\/MikesBikes-Introduction-Dividend-Information-50x46.png 50w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2022\/11\/MikesBikes-Introduction-Dividend-Information-60x56.png 60w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2022\/11\/MikesBikes-Introduction-Dividend-Information-100x93.png 100w\" sizes=\"auto, (max-width: 298px) 100vw, 298px\" \/><\/figure>\n\n\n\n    \t\t<div class=\"hts-messages hts-messages--alert   hts-messages--withicon \"   >\r\n    \t\t\t    \t\t\t    \t\t\t\t<p>\r\n    \t\t\t\t\t MikesBikes restricts the maximum size of your dividend payment to 50% of Retained Earnings. You will also not be allowed to issue a dividend if your company&#8217;s Share Price is below $5.    \t\t\t\t<\/p>\r\n    \t\t\t    \t\t\t\r\n    \t\t<\/div><!-- \/.ht-shortcodes-messages -->\r\n    \t\t\n","protected":false},"excerpt":{"rendered":"<p>A dividend is a payment by your company to its shareholders to distribute a portion of its earnings as a return on their investment. Why should I pay a dividend? Dividends add to your company&#8217;s share price, to the value of the amount paid plus interest on past dividends. This&#8230;<\/p>\n","protected":false},"author":4,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"footnotes":""},"ht-kb-category":[23],"ht-kb-tag":[],"class_list":["post-1217","ht_kb","type-ht_kb","status-publish","format-standard","hentry","ht_kb_category-mikesbikes-introduction-year-four"],"_links":{"self":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb\/1217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb"}],"about":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/comments?post=1217"}],"version-history":[{"count":11,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb\/1217\/revisions"}],"predecessor-version":[{"id":2185,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb\/1217\/revisions\/2185"}],"wp:attachment":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/media?parent=1217"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb-category?post=1217"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb-tag?post=1217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}