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
