What do you understand by dividend?

What is Dividend? Dividend is a distribution by a company to its shareholders. The dividend is usually paid from the profit. It is a way of handing over accumulated cash to shareholders. The money that companies do not distribute to shareholders can be reinvested by the company.

The dividend paid is usually taxed with a dividend tax. The government in the Netherlands levies a 15% dividend tax. The dividend can be expressed as the total dividend, but usually the focus is on the dividend per share.

In this article I will tell you more about dividend. What dividend is, where it comes from, and the importance of dividend and dividend yield.

Topics discussed in this article:

  • What is the meaning of dividend?
  • Types of dividends
  • Calculate dividend yield
  • History of dividend
  • Dividend tax
  • When to pay a dividend?
  • Psychology of Dividend
  • The effect of reinvestment
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