CBA Florida Inc. (fka CBAI)

[A77]

From investopedia:


What is a 'Capital Dividend'
A capital dividend is a type of payment a firm makes to its investors that is drawn from a company's paid-in-capital or shareholders' equity, rather than from the company's earnings as with regular dividends. A company will generally pay a capital dividend in instances where a dividend payment is required, but company earnings cannot facilitate such a cash payment.

Capital dividend is also known as a "return of capital."



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BREAKING DOWN 'Capital Dividend'
A capital dividend is typically not taxable for shareholders, as it is viewed as a return of the capital that investors pay in. Capital dividends are not a preferred form of dividend payment for firms or investors, as they often indicate a company’s struggling to generate earnings and free cash flow. Additionally, by paying out dividends from retained earnings, a company's struggles may worsen as its capital base shrinks, limiting investment and business opportunities in the future.



https://www.investopedia.com/terms/c/capital-dividend.asp