Equalizing Dividend

Whatever.com paid its dividends on Mar 31, Jun 30, Sep 30, and Dec 31. It bought Shmegeggie.com, which paid its dividends on Feb 28, May 31, Aug 31, and Nov 30. To "true up" the dividend structure for both companies, Whatever.com issues an equalizing dividend to the shareholders of Shmegeggie, to make up for the time lapse and difference in the amount of dividend previously paid.

That is, it pays a one-time 22-cent equalizing dividend to now make everyone whole and happy. Going forward, the dividend for the combined company is like a buck a share...for all shareholders.