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<span>Forms of payment</span> </div> </a> <ul id="toc-Forms_of_payment-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Payout_ratio" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Payout_ratio"> <div class="vector-toc-text"> <span class="vector-toc-numb">3</span> <span>Payout ratio</span> </div> </a> <ul id="toc-Payout_ratio-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Dividend_dates" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Dividend_dates"> <div class="vector-toc-text"> <span class="vector-toc-numb">4</span> <span>Dividend dates</span> </div> </a> <ul id="toc-Dividend_dates-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Dividend_frequency" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Dividend_frequency"> <div class="vector-toc-text"> <span class="vector-toc-numb">5</span> <span>Dividend frequency</span> </div> </a> <ul id="toc-Dividend_frequency-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Dividend-reinvestment" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Dividend-reinvestment"> <div class="vector-toc-text"> <span class="vector-toc-numb">6</span> <span>Dividend-reinvestment</span> </div> </a> <ul id="toc-Dividend-reinvestment-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Law_and_government_policy_on_dividends" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Law_and_government_policy_on_dividends"> <div class="vector-toc-text"> <span class="vector-toc-numb">7</span> <span>Law and government policy on dividends</span> </div> </a> <button aria-controls="toc-Law_and_government_policy_on_dividends-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Law and government policy on dividends subsection</span> </button> <ul id="toc-Law_and_government_policy_on_dividends-sublist" class="vector-toc-list"> <li id="toc-Australia_and_New_Zealand" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Australia_and_New_Zealand"> <div class="vector-toc-text"> <span class="vector-toc-numb">7.1</span> <span>Australia and New Zealand</span> </div> </a> <ul id="toc-Australia_and_New_Zealand-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-India" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#India"> <div class="vector-toc-text"> <span class="vector-toc-numb">7.2</span> <span>India</span> </div> </a> <ul id="toc-India-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-United_States_and_Canada" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#United_States_and_Canada"> <div class="vector-toc-text"> <span class="vector-toc-numb">7.3</span> <span>United States and Canada</span> </div> </a> <ul id="toc-United_States_and_Canada-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-United_Kingdom" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#United_Kingdom"> <div class="vector-toc-text"> <span class="vector-toc-numb">7.4</span> <span>United Kingdom</span> </div> </a> <ul id="toc-United_Kingdom-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Effect_on_stock_price" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Effect_on_stock_price"> <div class="vector-toc-text"> <span class="vector-toc-numb">8</span> <span>Effect on stock price</span> </div> </a> <button aria-controls="toc-Effect_on_stock_price-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Effect on stock price subsection</span> </button> <ul id="toc-Effect_on_stock_price-sublist" class="vector-toc-list"> <li id="toc-Criticism_and_analysis" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Criticism_and_analysis"> <div class="vector-toc-text"> <span class="vector-toc-numb">8.1</span> <span>Criticism and analysis</span> </div> </a> <ul id="toc-Criticism_and_analysis-sublist" class="vector-toc-list"> <li id="toc-Tax_implications" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Tax_implications"> <div class="vector-toc-text"> <span class="vector-toc-numb">8.1.1</span> <span>Tax implications</span> </div> </a> <ul id="toc-Tax_implications-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> </ul> </li> <li id="toc-Other_corporate_entities" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Other_corporate_entities"> <div class="vector-toc-text"> <span class="vector-toc-numb">9</span> <span>Other corporate entities</span> </div> </a> <button aria-controls="toc-Other_corporate_entities-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Other corporate entities subsection</span> </button> <ul id="toc-Other_corporate_entities-sublist" class="vector-toc-list"> <li id="toc-Cooperatives" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Cooperatives"> <div class="vector-toc-text"> <span class="vector-toc-numb">9.1</span> <span>Cooperatives</span> </div> </a> <ul id="toc-Cooperatives-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Trusts" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Trusts"> <div class="vector-toc-text"> <span class="vector-toc-numb">9.2</span> <span>Trusts</span> </div> </a> <ul id="toc-Trusts-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-See_also" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#See_also"> <div class="vector-toc-text"> <span class="vector-toc-numb">10</span> <span>See also</span> </div> </a> <ul id="toc-See_also-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-References" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#References"> <div class="vector-toc-text"> <span class="vector-toc-numb">11</span> <span>References</span> </div> </a> <ul id="toc-References-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-External_links" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#External_links"> <div class="vector-toc-text"> <span class="vector-toc-numb">12</span> <span>External links</span> </div> </a> <ul id="toc-External_links-sublist" class="vector-toc-list"> </ul> </li> </ul> </div> </div> </nav> </div> </div> <div class="mw-content-container"> <main id="content" class="mw-body"> <header class="mw-body-header vector-page-titlebar"> <nav aria-label="Contents" class="vector-toc-landmark"> <div id="vector-page-titlebar-toc" class="vector-dropdown vector-page-titlebar-toc vector-button-flush-left" > <input type="checkbox" id="vector-page-titlebar-toc-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-page-titlebar-toc" class="vector-dropdown-checkbox " aria-label="Toggle the table of contents" > <label id="vector-page-titlebar-toc-label" for="vector-page-titlebar-toc-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-listBullet mw-ui-icon-wikimedia-listBullet"></span> <span class="vector-dropdown-label-text">Toggle the table of contents</span> </label> <div class="vector-dropdown-content"> <div id="vector-page-titlebar-toc-unpinned-container" class="vector-unpinned-container"> </div> </div> </div> </nav> <h1 id="firstHeading" class="firstHeading mw-first-heading"><span class="mw-page-title-main">Dividend</span></h1> <div id="p-lang-btn" class="vector-dropdown mw-portlet mw-portlet-lang" > <input type="checkbox" id="p-lang-btn-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-p-lang-btn" class="vector-dropdown-checkbox mw-interlanguage-selector" aria-label="Go to an article in another language. Available in 63 languages" > <label id="p-lang-btn-label" for="p-lang-btn-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--action-progressive mw-portlet-lang-heading-63" aria-hidden="true" ><span class="vector-icon mw-ui-icon-language-progressive mw-ui-icon-wikimedia-language-progressive"></span> <span class="vector-dropdown-label-text">63 languages</span> </label> <div class="vector-dropdown-content"> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li class="interlanguage-link interwiki-af mw-list-item"><a href="https://af.wikipedia.org/wiki/Dividend" title="Dividend – Afrikaans" lang="af" hreflang="af" data-title="Dividend" data-language-autonym="Afrikaans" data-language-local-name="Afrikaans" class="interlanguage-link-target"><span>Afrikaans</span></a></li><li class="interlanguage-link interwiki-ar mw-list-item"><a href="https://ar.wikipedia.org/wiki/%D8%B1%D8%A8%D8%AD_%D8%A7%D9%84%D8%B3%D9%87%D9%85" title="ربح السهم – Arabic" lang="ar" hreflang="ar" data-title="ربح السهم" data-language-autonym="العربية" data-language-local-name="Arabic" class="interlanguage-link-target"><span>العربية</span></a></li><li class="interlanguage-link interwiki-az mw-list-item"><a href="https://az.wikipedia.org/wiki/Dividend" title="Dividend – Azerbaijani" lang="az" hreflang="az" data-title="Dividend" data-language-autonym="Azərbaycanca" data-language-local-name="Azerbaijani" class="interlanguage-link-target"><span>Azərbaycanca</span></a></li><li class="interlanguage-link interwiki-ba mw-list-item"><a href="https://ba.wikipedia.org/wiki/%D0%94%D0%B8%D0%B2%D0%B8%D0%B4%D0%B5%D0%BD%D0%B4" title="Дивиденд – Bashkir" lang="ba" hreflang="ba" data-title="Дивиденд" data-language-autonym="Башҡортса" data-language-local-name="Bashkir" class="interlanguage-link-target"><span>Башҡортса</span></a></li><li class="interlanguage-link interwiki-bg mw-list-item"><a href="https://bg.wikipedia.org/wiki/%D0%94%D0%B8%D0%B2%D0%B8%D0%B4%D0%B5%D0%BD%D1%82" title="Дивидент – Bulgarian" lang="bg" hreflang="bg" data-title="Дивидент" data-language-autonym="Български" data-language-local-name="Bulgarian" class="interlanguage-link-target"><span>Български</span></a></li><li class="interlanguage-link interwiki-ca mw-list-item"><a href="https://ca.wikipedia.org/wiki/Dividend_(economia)" title="Dividend (economia) – Catalan" lang="ca" hreflang="ca" data-title="Dividend (economia)" data-language-autonym="Català" data-language-local-name="Catalan" class="interlanguage-link-target"><span>Català</span></a></li><li class="interlanguage-link interwiki-cs mw-list-item"><a href="https://cs.wikipedia.org/wiki/Dividenda" title="Dividenda – Czech" lang="cs" hreflang="cs" data-title="Dividenda" data-language-autonym="Čeština" data-language-local-name="Czech" class="interlanguage-link-target"><span>Čeština</span></a></li><li class="interlanguage-link interwiki-da mw-list-item"><a href="https://da.wikipedia.org/wiki/Dividende" title="Dividende – Danish" lang="da" hreflang="da" data-title="Dividende" data-language-autonym="Dansk" data-language-local-name="Danish" class="interlanguage-link-target"><span>Dansk</span></a></li><li class="interlanguage-link interwiki-de mw-list-item"><a href="https://de.wikipedia.org/wiki/Dividende" title="Dividende – German" lang="de" hreflang="de" data-title="Dividende" data-language-autonym="Deutsch" data-language-local-name="German" class="interlanguage-link-target"><span>Deutsch</span></a></li><li class="interlanguage-link interwiki-et mw-list-item"><a href="https://et.wikipedia.org/wiki/Dividend" title="Dividend – Estonian" lang="et" hreflang="et" data-title="Dividend" data-language-autonym="Eesti" data-language-local-name="Estonian" class="interlanguage-link-target"><span>Eesti</span></a></li><li class="interlanguage-link interwiki-es mw-list-item"><a href="https://es.wikipedia.org/wiki/Dividendo" title="Dividendo – Spanish" lang="es" hreflang="es" data-title="Dividendo" data-language-autonym="Español" data-language-local-name="Spanish" class="interlanguage-link-target"><span>Español</span></a></li><li class="interlanguage-link interwiki-eo mw-list-item"><a href="https://eo.wikipedia.org/wiki/Dividendo" title="Dividendo – Esperanto" lang="eo" hreflang="eo" data-title="Dividendo" data-language-autonym="Esperanto" data-language-local-name="Esperanto" class="interlanguage-link-target"><span>Esperanto</span></a></li><li class="interlanguage-link interwiki-eu mw-list-item"><a href="https://eu.wikipedia.org/wiki/Dibidendu" title="Dibidendu – Basque" lang="eu" hreflang="eu" data-title="Dibidendu" data-language-autonym="Euskara" data-language-local-name="Basque" class="interlanguage-link-target"><span>Euskara</span></a></li><li class="interlanguage-link interwiki-fa mw-list-item"><a href="https://fa.wikipedia.org/wiki/%D8%B3%D9%88%D8%AF_%D8%B3%D9%87%D8%A7%D9%85" title="سود سهام – Persian" lang="fa" hreflang="fa" data-title="سود سهام" data-language-autonym="فارسی" data-language-local-name="Persian" class="interlanguage-link-target"><span>فارسی</span></a></li><li class="interlanguage-link interwiki-fr mw-list-item"><a href="https://fr.wikipedia.org/wiki/Dividende" title="Dividende – French" lang="fr" hreflang="fr" data-title="Dividende" data-language-autonym="Français" data-language-local-name="French" class="interlanguage-link-target"><span>Français</span></a></li><li class="interlanguage-link interwiki-ko mw-list-item"><a href="https://ko.wikipedia.org/wiki/%EB%B0%B0%EB%8B%B9" title="배당 – Korean" lang="ko" hreflang="ko" data-title="배당" data-language-autonym="한국어" data-language-local-name="Korean" class="interlanguage-link-target"><span>한국어</span></a></li><li class="interlanguage-link interwiki-hy mw-list-item"><a href="https://hy.wikipedia.org/wiki/%D4%B4%D5%AB%D5%BE%D5%AB%D5%A4%D5%A5%D5%B6%D5%A4" title="Դիվիդենդ – Armenian" lang="hy" hreflang="hy" data-title="Դիվիդենդ" data-language-autonym="Հայերեն" data-language-local-name="Armenian" class="interlanguage-link-target"><span>Հայերեն</span></a></li><li class="interlanguage-link interwiki-hi mw-list-item"><a href="https://hi.wikipedia.org/wiki/%E0%A4%B2%E0%A4%BE%E0%A4%AD%E0%A4%BE%E0%A4%82%E0%A4%B6" title="लाभांश – Hindi" lang="hi" hreflang="hi" data-title="लाभांश" data-language-autonym="हिन्दी" data-language-local-name="Hindi" class="interlanguage-link-target"><span>हिन्दी</span></a></li><li class="interlanguage-link interwiki-hr mw-list-item"><a href="https://hr.wikipedia.org/wiki/Dividenda" title="Dividenda – Croatian" lang="hr" hreflang="hr" data-title="Dividenda" data-language-autonym="Hrvatski" data-language-local-name="Croatian" class="interlanguage-link-target"><span>Hrvatski</span></a></li><li class="interlanguage-link interwiki-id mw-list-item"><a href="https://id.wikipedia.org/wiki/Dividen" title="Dividen – Indonesian" lang="id" hreflang="id" data-title="Dividen" data-language-autonym="Bahasa Indonesia" data-language-local-name="Indonesian" class="interlanguage-link-target"><span>Bahasa Indonesia</span></a></li><li class="interlanguage-link interwiki-is mw-list-item"><a href="https://is.wikipedia.org/wiki/Ar%C3%B0grei%C3%B0sla" title="Arðgreiðsla – Icelandic" lang="is" hreflang="is" data-title="Arðgreiðsla" data-language-autonym="Íslenska" data-language-local-name="Icelandic" class="interlanguage-link-target"><span>Íslenska</span></a></li><li class="interlanguage-link interwiki-it mw-list-item"><a href="https://it.wikipedia.org/wiki/Dividendo_(economia)" title="Dividendo (economia) – Italian" lang="it" hreflang="it" data-title="Dividendo (economia)" data-language-autonym="Italiano" data-language-local-name="Italian" class="interlanguage-link-target"><span>Italiano</span></a></li><li class="interlanguage-link interwiki-he mw-list-item"><a href="https://he.wikipedia.org/wiki/%D7%93%D7%99%D7%91%D7%99%D7%93%D7%A0%D7%93" title="דיבידנד – Hebrew" lang="he" hreflang="he" data-title="דיבידנד" data-language-autonym="עברית" data-language-local-name="Hebrew" class="interlanguage-link-target"><span>עברית</span></a></li><li class="interlanguage-link interwiki-kn mw-list-item"><a href="https://kn.wikipedia.org/wiki/%E0%B2%B2%E0%B2%BE%E0%B2%AD%E0%B2%BE%E0%B2%82%E0%B2%B6" title="ಲಾಭಾಂಶ – Kannada" lang="kn" hreflang="kn" data-title="ಲಾಭಾಂಶ" data-language-autonym="ಕನ್ನಡ" data-language-local-name="Kannada" class="interlanguage-link-target"><span>ಕನ್ನಡ</span></a></li><li class="interlanguage-link interwiki-ka mw-list-item"><a href="https://ka.wikipedia.org/wiki/%E1%83%93%E1%83%98%E1%83%95%E1%83%98%E1%83%93%E1%83%94%E1%83%9C%E1%83%93%E1%83%98" title="დივიდენდი – Georgian" lang="ka" hreflang="ka" data-title="დივიდენდი" data-language-autonym="ქართული" data-language-local-name="Georgian" class="interlanguage-link-target"><span>ქართული</span></a></li><li class="interlanguage-link interwiki-kk mw-list-item"><a href="https://kk.wikipedia.org/wiki/%D0%94%D0%B8%D0%B2%D0%B8%D0%B4%D0%B5%D0%BD%D0%B4" title="Дивиденд – Kazakh" lang="kk" hreflang="kk" data-title="Дивиденд" data-language-autonym="Қазақша" data-language-local-name="Kazakh" class="interlanguage-link-target"><span>Қазақша</span></a></li><li class="interlanguage-link interwiki-ky mw-list-item"><a href="https://ky.wikipedia.org/wiki/%D0%94%D0%B8%D0%B2%D0%B8%D0%B4%D0%B5%D0%BD%D0%B4" title="Дивиденд – Kyrgyz" lang="ky" hreflang="ky" data-title="Дивиденд" data-language-autonym="Кыргызча" data-language-local-name="Kyrgyz" class="interlanguage-link-target"><span>Кыргызча</span></a></li><li class="interlanguage-link interwiki-lv mw-list-item"><a href="https://lv.wikipedia.org/wiki/Dividende" title="Dividende – Latvian" lang="lv" hreflang="lv" data-title="Dividende" data-language-autonym="Latviešu" data-language-local-name="Latvian" class="interlanguage-link-target"><span>Latviešu</span></a></li><li class="interlanguage-link interwiki-lb mw-list-item"><a href="https://lb.wikipedia.org/wiki/Dividend" title="Dividend – Luxembourgish" lang="lb" hreflang="lb" data-title="Dividend" data-language-autonym="Lëtzebuergesch" data-language-local-name="Luxembourgish" class="interlanguage-link-target"><span>Lëtzebuergesch</span></a></li><li class="interlanguage-link interwiki-lt mw-list-item"><a href="https://lt.wikipedia.org/wiki/Dividendas" title="Dividendas – Lithuanian" lang="lt" hreflang="lt" data-title="Dividendas" data-language-autonym="Lietuvių" data-language-local-name="Lithuanian" class="interlanguage-link-target"><span>Lietuvių</span></a></li><li class="interlanguage-link interwiki-hu mw-list-item"><a href="https://hu.wikipedia.org/wiki/Osztal%C3%A9k" title="Osztalék – Hungarian" lang="hu" hreflang="hu" data-title="Osztalék" data-language-autonym="Magyar" data-language-local-name="Hungarian" class="interlanguage-link-target"><span>Magyar</span></a></li><li class="interlanguage-link interwiki-mk mw-list-item"><a href="https://mk.wikipedia.org/wiki/%D0%94%D0%B8%D0%B2%D0%B8%D0%B4%D0%B5%D0%BD%D0%B4%D0%B0" title="Дивиденда – Macedonian" lang="mk" hreflang="mk" data-title="Дивиденда" data-language-autonym="Македонски" data-language-local-name="Macedonian" class="interlanguage-link-target"><span>Македонски</span></a></li><li class="interlanguage-link interwiki-ml mw-list-item"><a href="https://ml.wikipedia.org/wiki/%E0%B4%A1%E0%B4%BF%E0%B4%B5%E0%B4%BF%E0%B4%A1%E0%B4%A8%E0%B5%8D%E0%B4%B1%E0%B5%8D" title="ഡിവിഡന്റ് – Malayalam" lang="ml" hreflang="ml" data-title="ഡിവിഡന്റ്" data-language-autonym="മലയാളം" data-language-local-name="Malayalam" class="interlanguage-link-target"><span>മലയാളം</span></a></li><li class="interlanguage-link interwiki-mr mw-list-item"><a href="https://mr.wikipedia.org/wiki/%E0%A4%B2%E0%A4%BE%E0%A4%AD%E0%A4%BE%E0%A4%82%E0%A4%B6" title="लाभांश – Marathi" lang="mr" hreflang="mr" data-title="लाभांश" data-language-autonym="मराठी" data-language-local-name="Marathi" class="interlanguage-link-target"><span>मराठी</span></a></li><li class="interlanguage-link interwiki-ms mw-list-item"><a href="https://ms.wikipedia.org/wiki/Dividen" title="Dividen – Malay" lang="ms" hreflang="ms" data-title="Dividen" data-language-autonym="Bahasa Melayu" data-language-local-name="Malay" class="interlanguage-link-target"><span>Bahasa Melayu</span></a></li><li class="interlanguage-link interwiki-nl mw-list-item"><a href="https://nl.wikipedia.org/wiki/Dividend" title="Dividend – Dutch" lang="nl" hreflang="nl" data-title="Dividend" data-language-autonym="Nederlands" data-language-local-name="Dutch" class="interlanguage-link-target"><span>Nederlands</span></a></li><li class="interlanguage-link interwiki-ne mw-list-item"><a href="https://ne.wikipedia.org/wiki/%E0%A4%B2%E0%A4%BE%E0%A4%AD%E0%A4%BE%E0%A4%82%E0%A4%B6" title="लाभांश – Nepali" lang="ne" hreflang="ne" data-title="लाभांश" data-language-autonym="नेपाली" data-language-local-name="Nepali" class="interlanguage-link-target"><span>नेपाली</span></a></li><li class="interlanguage-link interwiki-ja mw-list-item"><a href="https://ja.wikipedia.org/wiki/%E9%85%8D%E5%BD%93" title="配当 – Japanese" lang="ja" hreflang="ja" data-title="配当" data-language-autonym="日本語" data-language-local-name="Japanese" class="interlanguage-link-target"><span>日本語</span></a></li><li class="interlanguage-link interwiki-no mw-list-item"><a href="https://no.wikipedia.org/wiki/Utbytte" title="Utbytte – Norwegian Bokmål" lang="nb" hreflang="nb" data-title="Utbytte" data-language-autonym="Norsk bokmål" data-language-local-name="Norwegian Bokmål" class="interlanguage-link-target"><span>Norsk bokmål</span></a></li><li class="interlanguage-link interwiki-or mw-list-item"><a href="https://or.wikipedia.org/wiki/%E0%AC%A1%E0%AC%BF%E0%AC%AD%E0%AC%BF%E0%AC%A1%E0%AD%87%E0%AC%A3%E0%AD%8D%E0%AC%A1" title="ଡିଭିଡେଣ୍ଡ – Odia" lang="or" hreflang="or" data-title="ଡିଭିଡେଣ୍ଡ" data-language-autonym="ଓଡ଼ିଆ" data-language-local-name="Odia" class="interlanguage-link-target"><span>ଓଡ଼ିଆ</span></a></li><li class="interlanguage-link interwiki-uz mw-list-item"><a href="https://uz.wikipedia.org/wiki/Dividend" title="Dividend – Uzbek" lang="uz" hreflang="uz" data-title="Dividend" data-language-autonym="Oʻzbekcha / ўзбекча" data-language-local-name="Uzbek" class="interlanguage-link-target"><span>Oʻzbekcha / ўзбекча</span></a></li><li class="interlanguage-link interwiki-pl mw-list-item"><a href="https://pl.wikipedia.org/wiki/Dywidenda" title="Dywidenda – Polish" lang="pl" hreflang="pl" data-title="Dywidenda" data-language-autonym="Polski" data-language-local-name="Polish" class="interlanguage-link-target"><span>Polski</span></a></li><li class="interlanguage-link interwiki-pt mw-list-item"><a href="https://pt.wikipedia.org/wiki/Dividendo" title="Dividendo – Portuguese" lang="pt" hreflang="pt" data-title="Dividendo" data-language-autonym="Português" data-language-local-name="Portuguese" class="interlanguage-link-target"><span>Português</span></a></li><li class="interlanguage-link interwiki-kaa mw-list-item"><a href="https://kaa.wikipedia.org/wiki/Dividend" title="Dividend – Kara-Kalpak" lang="kaa" hreflang="kaa" data-title="Dividend" data-language-autonym="Qaraqalpaqsha" data-language-local-name="Kara-Kalpak" class="interlanguage-link-target"><span>Qaraqalpaqsha</span></a></li><li class="interlanguage-link interwiki-ro mw-list-item"><a href="https://ro.wikipedia.org/wiki/Dividend" title="Dividend – Romanian" lang="ro" hreflang="ro" data-title="Dividend" data-language-autonym="Română" data-language-local-name="Romanian" class="interlanguage-link-target"><span>Română</span></a></li><li class="interlanguage-link interwiki-ru mw-list-item"><a href="https://ru.wikipedia.org/wiki/%D0%94%D0%B8%D0%B2%D0%B8%D0%B4%D0%B5%D0%BD%D0%B4" title="Дивиденд – Russian" lang="ru" hreflang="ru" data-title="Дивиденд" data-language-autonym="Русский" data-language-local-name="Russian" class="interlanguage-link-target"><span>Русский</span></a></li><li class="interlanguage-link interwiki-sah mw-list-item"><a href="https://sah.wikipedia.org/wiki/%D0%94%D0%B8%D0%B2%D0%B8%D0%B4%D0%B5%D0%BD%D0%B4" title="Дивиденд – Yakut" lang="sah" hreflang="sah" data-title="Дивиденд" data-language-autonym="Саха тыла" data-language-local-name="Yakut" class="interlanguage-link-target"><span>Саха тыла</span></a></li><li class="interlanguage-link interwiki-simple mw-list-item"><a href="https://simple.wikipedia.org/wiki/Dividend" title="Dividend – Simple English" lang="en-simple" hreflang="en-simple" data-title="Dividend" data-language-autonym="Simple English" data-language-local-name="Simple English" class="interlanguage-link-target"><span>Simple English</span></a></li><li class="interlanguage-link interwiki-sd mw-list-item"><a href="https://sd.wikipedia.org/wiki/%DA%AA%D9%85%D9%BE%D9%86%D9%8A_%D8%AC%D9%88_%D9%85%D9%86%D8%A7%D9%81%D8%B9%D9%88" title="ڪمپني جو منافعو – Sindhi" lang="sd" hreflang="sd" data-title="ڪمپني جو منافعو" data-language-autonym="سنڌي" data-language-local-name="Sindhi" class="interlanguage-link-target"><span>سنڌي</span></a></li><li class="interlanguage-link interwiki-sl mw-list-item"><a href="https://sl.wikipedia.org/wiki/Dividenda" title="Dividenda – Slovenian" lang="sl" hreflang="sl" data-title="Dividenda" data-language-autonym="Slovenščina" data-language-local-name="Slovenian" class="interlanguage-link-target"><span>Slovenščina</span></a></li><li class="interlanguage-link interwiki-sr mw-list-item"><a href="https://sr.wikipedia.org/wiki/%D0%94%D0%B8%D0%B2%D0%B8%D0%B4%D0%B5%D0%BD%D0%B4%D0%B0" title="Дивиденда – Serbian" lang="sr" hreflang="sr" data-title="Дивиденда" data-language-autonym="Српски / srpski" data-language-local-name="Serbian" class="interlanguage-link-target"><span>Српски / srpski</span></a></li><li class="interlanguage-link interwiki-su mw-list-item"><a href="https://su.wikipedia.org/wiki/Dividen" title="Dividen – Sundanese" lang="su" hreflang="su" data-title="Dividen" data-language-autonym="Sunda" data-language-local-name="Sundanese" class="interlanguage-link-target"><span>Sunda</span></a></li><li class="interlanguage-link interwiki-fi mw-list-item"><a href="https://fi.wikipedia.org/wiki/Osinko" title="Osinko – Finnish" lang="fi" hreflang="fi" data-title="Osinko" data-language-autonym="Suomi" data-language-local-name="Finnish" class="interlanguage-link-target"><span>Suomi</span></a></li><li class="interlanguage-link interwiki-sv mw-list-item"><a href="https://sv.wikipedia.org/wiki/Aktieutdelning" title="Aktieutdelning – Swedish" lang="sv" hreflang="sv" data-title="Aktieutdelning" data-language-autonym="Svenska" data-language-local-name="Swedish" class="interlanguage-link-target"><span>Svenska</span></a></li><li class="interlanguage-link interwiki-ta mw-list-item"><a href="https://ta.wikipedia.org/wiki/%E0%AE%AA%E0%AE%99%E0%AF%8D%E0%AE%95%E0%AF%81_%E0%AE%87%E0%AE%B2%E0%AE%BE%E0%AE%AA%E0%AE%AE%E0%AF%8D" title="பங்கு இலாபம் – Tamil" lang="ta" hreflang="ta" data-title="பங்கு இலாபம்" data-language-autonym="தமிழ்" data-language-local-name="Tamil" class="interlanguage-link-target"><span>தமிழ்</span></a></li><li class="interlanguage-link interwiki-tt mw-list-item"><a href="https://tt.wikipedia.org/wiki/Dividend" title="Dividend – Tatar" lang="tt" hreflang="tt" data-title="Dividend" data-language-autonym="Татарча / tatarça" data-language-local-name="Tatar" class="interlanguage-link-target"><span>Татарча / tatarça</span></a></li><li class="interlanguage-link interwiki-th mw-list-item"><a href="https://th.wikipedia.org/wiki/%E0%B9%80%E0%B8%87%E0%B8%B4%E0%B8%99%E0%B8%9B%E0%B8%B1%E0%B8%99%E0%B8%9C%E0%B8%A5" title="เงินปันผล – Thai" lang="th" hreflang="th" data-title="เงินปันผล" data-language-autonym="ไทย" data-language-local-name="Thai" class="interlanguage-link-target"><span>ไทย</span></a></li><li class="interlanguage-link interwiki-tr mw-list-item"><a href="https://tr.wikipedia.org/wiki/Temett%C3%BC" title="Temettü – Turkish" lang="tr" hreflang="tr" data-title="Temettü" data-language-autonym="Türkçe" data-language-local-name="Turkish" class="interlanguage-link-target"><span>Türkçe</span></a></li><li class="interlanguage-link interwiki-uk mw-list-item"><a href="https://uk.wikipedia.org/wiki/%D0%94%D0%B8%D0%B2%D1%96%D0%B4%D0%B5%D0%BD%D0%B4%D0%B8" title="Дивіденди – Ukrainian" lang="uk" hreflang="uk" data-title="Дивіденди" data-language-autonym="Українська" data-language-local-name="Ukrainian" class="interlanguage-link-target"><span>Українська</span></a></li><li class="interlanguage-link interwiki-vi mw-list-item"><a href="https://vi.wikipedia.org/wiki/C%E1%BB%95_t%E1%BB%A9c" title="Cổ tức – Vietnamese" lang="vi" hreflang="vi" data-title="Cổ tức" data-language-autonym="Tiếng Việt" data-language-local-name="Vietnamese" class="interlanguage-link-target"><span>Tiếng Việt</span></a></li><li class="interlanguage-link interwiki-wuu mw-list-item"><a href="https://wuu.wikipedia.org/wiki/%E8%82%A1%E6%81%AF" title="股息 – Wu" lang="wuu" hreflang="wuu" data-title="股息" data-language-autonym="吴语" data-language-local-name="Wu" class="interlanguage-link-target"><span>吴语</span></a></li><li class="interlanguage-link interwiki-zh-yue mw-list-item"><a href="https://zh-yue.wikipedia.org/wiki/%E8%82%A1%E6%81%AF" title="股息 – Cantonese" lang="yue" hreflang="yue" data-title="股息" data-language-autonym="粵語" data-language-local-name="Cantonese" class="interlanguage-link-target"><span>粵語</span></a></li><li class="interlanguage-link interwiki-zh mw-list-item"><a href="https://zh.wikipedia.org/wiki/%E8%82%A1%E6%81%AF" title="股息 – Chinese" lang="zh" hreflang="zh" data-title="股息" data-language-autonym="中文" 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dir="ltr"><div class="shortdescription nomobile noexcerpt noprint searchaux" style="display:none">Payment made by a corporation to its shareholders, usually as a distribution of profits</div> <style data-mw-deduplicate="TemplateStyles:r1236090951">.mw-parser-output .hatnote{font-style:italic}.mw-parser-output div.hatnote{padding-left:1.6em;margin-bottom:0.5em}.mw-parser-output .hatnote i{font-style:normal}.mw-parser-output .hatnote+link+.hatnote{margin-top:-0.5em}@media print{body.ns-0 .mw-parser-output .hatnote{display:none!important}}</style><div role="note" class="hatnote navigation-not-searchable">This article is about the financial concept. 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screen{html.skin-theme-clientpref-night .mw-parser-output .sidebar:not(.notheme) .sidebar-list-title,html.skin-theme-clientpref-night .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle{background:transparent!important}html.skin-theme-clientpref-night .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle a{color:var(--color-progressive)!important}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-list-title,html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle{background:transparent!important}html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle a{color:var(--color-progressive)!important}}@media print{body.ns-0 .mw-parser-output .sidebar{display:none!important}}</style><style data-mw-deduplicate="TemplateStyles:r1099073579">.mw-parser-output .accounting .sidebar-list-title{border-top:1px solid #aaa;text-align:center}.mw-parser-output .accounting .noborder .sidebar-list-title{border-top:none}</style><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><table class="sidebar sidebar-collapse nomobile nowraplinks accounting"><tbody><tr><td class="sidebar-pretitle">Part of <a href="/wiki/Category:Accounting" title="Category:Accounting">a series</a> on</td></tr><tr><th class="sidebar-title-with-pretitle"><a href="/wiki/Accounting" title="Accounting">Accounting</a></th></tr><tr><td class="sidebar-image"><span class="notpageimage" typeof="mw:File"><a href="/wiki/File:Ledger.png" class="mw-file-description" title="Early 19th-century German ledger"><img alt="Early 19th-century German ledger" src="//upload.wikimedia.org/wikipedia/commons/thumb/e/e6/Ledger.png/200px-Ledger.png" decoding="async" width="200" height="105" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/e/e6/Ledger.png/300px-Ledger.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/e/e6/Ledger.png/400px-Ledger.png 2x" data-file-width="1706" data-file-height="896" /></a></span></td></tr><tr><td class="sidebar-above"> <div class="hlist"><ul><li><a href="/wiki/Historical_cost" title="Historical cost">Historical cost</a></li><li><a href="/wiki/Constant_purchasing_power_accounting" title="Constant purchasing power accounting">Constant purchasing power</a></li><li><a href="/wiki/Management_accounting" title="Management accounting">Management</a></li><li><a href="/wiki/Tax_accounting_in_the_United_States" title="Tax accounting in the United States">Tax</a></li></ul></div></td></tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed noborder"><div class="sidebar-list-title" style="color: var(--color-base)">Major types</div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Audit" title="Audit">Audit</a></li><li><a href="/wiki/Budget" title="Budget">Budget</a></li><li><a href="/wiki/Cost_accounting" title="Cost accounting">Cost</a></li><li><a href="/wiki/Forensic_accounting" title="Forensic accounting">Forensic</a></li><li><a href="/wiki/Financial_accounting" title="Financial accounting">Financial</a></li><li><a href="/wiki/Fund_accounting" title="Fund accounting">Fund</a></li><li><a href="/wiki/Governmental_accounting" title="Governmental accounting">Governmental</a></li><li><a href="/wiki/Management_accounting" title="Management accounting">Management</a></li><li><a href="/wiki/Social_accounting" title="Social accounting">Social</a></li><li><a href="/wiki/Tax_accounting" class="mw-redirect" title="Tax accounting">Tax</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)">Key concepts</div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Accounting_period" title="Accounting period">Accounting period</a></li><li><a href="/wiki/Accrual" title="Accrual">Accrual</a></li><li><a href="/wiki/Constant_purchasing_power_accounting" title="Constant purchasing power accounting">Constant purchasing power</a></li><li><a href="/wiki/Economic_entity" title="Economic entity">Economic entity</a></li><li><a href="/wiki/Fair_value" title="Fair value">Fair value</a></li><li><a href="/wiki/Going_concern" title="Going concern">Going concern</a></li><li><a href="/wiki/Historical_cost" title="Historical cost">Historical cost</a></li><li><a href="/wiki/Matching_principle" title="Matching principle">Matching principle</a></li><li><a href="/wiki/Materiality_(auditing)" title="Materiality (auditing)">Materiality</a></li><li><a href="/wiki/Revenue_recognition" title="Revenue recognition">Revenue recognition</a></li><li><a href="/wiki/Unit_of_account" title="Unit of account">Unit of account</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)">Selected accounts</div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Asset" title="Asset">Assets</a></li><li><a href="/wiki/Cash" title="Cash">Cash</a></li><li><a href="/wiki/Cost_of_goods_sold" title="Cost of goods sold">Cost of goods sold</a></li><li><a href="/wiki/Depreciation" title="Depreciation">Depreciation</a> / <a href="/wiki/Amortization_(business)" class="mw-redirect" title="Amortization (business)">Amortization (business)</a></li><li><a href="/wiki/Equity_(finance)" title="Equity (finance)">Equity</a></li><li><a href="/wiki/Expense" title="Expense">Expenses</a></li><li><a href="/wiki/Goodwill_(accounting)" title="Goodwill (accounting)">Goodwill</a></li><li><a href="/wiki/Liability_(financial_accounting)" title="Liability (financial accounting)">Liabilities</a></li><li><a href="/wiki/Profit_(accounting)" title="Profit (accounting)">Profit</a></li><li><a href="/wiki/Revenue" title="Revenue">Revenue</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)"><a href="/wiki/Accounting_standard" title="Accounting standard">Accounting standards</a></div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Generally_accepted_accounting_principles" class="mw-redirect" title="Generally accepted accounting principles">Generally-accepted principles</a></li><li><a href="/wiki/Generally_accepted_auditing_standards" class="mw-redirect" title="Generally accepted auditing standards">Generally-accepted auditing standards</a></li><li><a href="/wiki/Convergence_of_accounting_standards" title="Convergence of accounting standards">Convergence</a></li><li><a href="/wiki/International_Financial_Reporting_Standards" title="International Financial Reporting Standards">International Financial Reporting Standards</a></li><li><a href="/wiki/International_Standards_on_Auditing" title="International Standards on Auditing">International Standards on Auditing</a></li><li><a href="/wiki/Management_Accounting_Principles" class="mw-redirect" title="Management Accounting Principles">Management Accounting Principles</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)"><a href="/wiki/Financial_statement" title="Financial statement">Financial statements</a></div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Annual_report" title="Annual report">Annual report</a></li><li><a href="/wiki/Balance_sheet" title="Balance sheet">Balance sheet</a></li><li><a href="/wiki/Cash_flow_statement" title="Cash flow statement">Cash-flow</a></li><li><a href="/wiki/Statement_of_changes_in_equity" title="Statement of changes in equity">Equity</a></li><li><a href="/wiki/Income_statement" title="Income statement">Income</a></li><li><a href="/wiki/Management_discussion_and_analysis" class="mw-redirect" title="Management discussion and analysis">Management discussion</a></li><li><a href="/wiki/Notes_to_the_financial_statements" class="mw-redirect" title="Notes to the financial statements">Notes to the financial statements</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)"><a href="/wiki/Bookkeeping" title="Bookkeeping">Bookkeeping</a></div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Bank_reconciliation" title="Bank reconciliation">Bank reconciliation</a></li><li><a href="/wiki/Debits_and_credits" title="Debits and credits">Debits and credits</a></li><li><a href="/wiki/Double-entry_bookkeeping_system" class="mw-redirect" title="Double-entry bookkeeping system">Double-entry system</a></li><li><a href="/wiki/FIFO_and_LIFO_accounting" title="FIFO and LIFO accounting">FIFO and LIFO</a></li><li><a href="/wiki/General_journal" title="General journal">Journal</a></li><li><a href="/wiki/Ledger" title="Ledger">Ledger</a> / <a href="/wiki/General_ledger" title="General ledger">General ledger</a></li><li><a href="/wiki/Trial_balance" title="Trial balance">Trial balance</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)"><a href="/wiki/Audit" title="Audit">Auditing</a></div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Financial_audit" title="Financial audit">Financial</a></li><li><a href="/wiki/Internal_audit" title="Internal audit">Internal</a></li><li><a href="/wiki/Accounting_networks_and_associations" class="mw-redirect" title="Accounting networks and associations">Firms</a></li><li><a href="/wiki/Auditor%27s_report" title="Auditor's report">Report</a></li><li><a href="/wiki/Sarbanes%E2%80%93Oxley_Act" title="Sarbanes–Oxley Act">Sarbanes–Oxley Act</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)">People and organizations</div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Accountant" title="Accountant">Accountants</a></li><li><a href="/wiki/Category:Accounting_organizations" title="Category:Accounting organizations">Accounting organizations</a></li><li><a href="/wiki/Luca_Pacioli" title="Luca Pacioli">Luca Pacioli</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)">Development</div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/History_of_accounting" title="History of accounting">History</a></li><li><a href="/wiki/Accounting_research" title="Accounting research">Research</a></li><li><a href="/wiki/Positive_accounting" title="Positive accounting">Positive accounting</a></li><li><a href="/wiki/Sarbanes%E2%80%93Oxley_Act" title="Sarbanes–Oxley Act">Sarbanes–Oxley Act</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="color: var(--color-base)">Misconduct</div><div class="sidebar-list-content mw-collapsible-content"><div class="hlist"><ul><li><a href="/wiki/Creative_accounting" title="Creative accounting">Creative</a></li><li><a href="/wiki/Earnings_management" title="Earnings management">Earnings management</a></li><li><a href="/wiki/Error_account" title="Error account">Error account</a></li><li><a href="/wiki/Hollywood_accounting" title="Hollywood accounting">Hollywood</a></li><li><a href="/wiki/Off-balance-sheet" title="Off-balance-sheet">Off-balance-sheet</a></li><li><a href="/wiki/Two_sets_of_books" title="Two sets of books">Two sets of books</a></li></ul></div></div></div></td> </tr><tr><td class="sidebar-navbar"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1239400231">.mw-parser-output .navbar{display:inline;font-size:88%;font-weight:normal}.mw-parser-output .navbar-collapse{float:left;text-align:left}.mw-parser-output .navbar-boxtext{word-spacing:0}.mw-parser-output .navbar ul{display:inline-block;white-space:nowrap;line-height:inherit}.mw-parser-output .navbar-brackets::before{margin-right:-0.125em;content:"[ "}.mw-parser-output .navbar-brackets::after{margin-left:-0.125em;content:" ]"}.mw-parser-output .navbar li{word-spacing:-0.125em}.mw-parser-output .navbar a>span,.mw-parser-output .navbar a>abbr{text-decoration:inherit}.mw-parser-output .navbar-mini abbr{font-variant:small-caps;border-bottom:none;text-decoration:none;cursor:inherit}.mw-parser-output .navbar-ct-full{font-size:114%;margin:0 7em}.mw-parser-output .navbar-ct-mini{font-size:114%;margin:0 4em}html.skin-theme-clientpref-night .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}@media(prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}}@media print{.mw-parser-output .navbar{display:none!important}}</style><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Accounting" title="Template:Accounting"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Accounting" title="Template talk:Accounting"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Accounting" title="Special:EditPage/Template:Accounting"><abbr title="Edit this template">e</abbr></a></li></ul></div></td></tr></tbody></table> <p>A <b>dividend</b> is a distribution of <a href="/wiki/Profit_(accounting)" title="Profit (accounting)">profits</a> by a <a href="/wiki/Corporation" title="Corporation">corporation</a> to its <a href="/wiki/Shareholder" title="Shareholder">shareholders</a>, after which the stock exchange decreases the price of the stock by the dividend to remove volatility. The market has no control over the stock price on open on the ex-dividend date, though more often than not it may open higher.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-invested in the business (called <a href="/wiki/Retained_earnings" title="Retained earnings">retained earnings</a>). The current year profit as well as the retained earnings of previous years are available for distribution; a corporation is usually prohibited from paying a dividend out of its capital. Distribution to shareholders may be in cash (usually by bank transfer) or, if the corporation has a <a href="/wiki/Dividend_reinvestment_plan" title="Dividend reinvestment plan">dividend reinvestment plan</a>, the amount can be paid by the issue of further shares or by <a href="/wiki/Share_repurchase" title="Share repurchase">share repurchase</a>. In some cases, the distribution may be of assets. </p><p>The dividend received by a shareholder is income of the shareholder and may be subject to income tax (see <a href="/wiki/Dividend_tax" title="Dividend tax">dividend tax</a>). The tax treatment of this income varies considerably between jurisdictions. The corporation does not receive a tax deduction for the dividends it pays.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> </p><p>A dividend is allocated as a fixed amount per share, with shareholders receiving a dividend in proportion to their shareholding. Dividends can provide at least temporarily stable income and raise morale among shareholders, but are not guaranteed to continue. For the <a href="/wiki/Joint-stock_company" title="Joint-stock company">joint-stock company</a>, paying dividends is not an <a href="/wiki/Expense" title="Expense">expense</a>; rather, it is the division of after-tax profits among shareholders. Retained earnings (profits that have not been distributed as dividends) are shown in the shareholders' equity section on the company's balance sheet – the same as its issued share capital. <a href="/wiki/Public_company" title="Public company">Public companies</a> usually pay dividends on a fixed schedule, but may cancel a scheduled dividend, or declare an unscheduled dividend at any time, sometimes called a <a href="/wiki/Special_dividend" title="Special dividend">special dividend</a> to distinguish it from the regular dividends. (more usually a special dividend is paid at the same time as the regular dividend, but for a one-off higher amount). <a href="/wiki/Cooperative" title="Cooperative">Cooperatives</a>, on the other hand, allocate dividends according to members' activity, so their dividends are often considered to be a pre-tax expense. </p><p>The usually fixed payments to holders of preference shares (or preferred stock in American English) are classed as dividends. The word <i>dividend</i> comes from the <a href="/wiki/Latin_language" class="mw-redirect" title="Latin language">Latin</a> word <span title="Latin-language text"><i lang="la">dividendum</i></span> ("thing to be divided").<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="History">History</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=1" title="Edit section: History"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Further information: <a href="/wiki/Financial_history_of_the_Dutch_Republic" title="Financial history of the Dutch Republic">Financial history of the Dutch Republic</a> and <a href="/wiki/Dutch_East_India_Company" title="Dutch East India Company">Dutch East India Company</a></div> <p>In the financial history of the world, the <a href="/wiki/Dutch_East_India_Company" title="Dutch East India Company">Dutch East India Company</a> (VOC) was the first recorded (public) company ever to pay regular dividends.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> The VOC paid annual dividends worth around 18 percent of the value of the shares for almost 200 years of existence (1602–1800).<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> </p><p>In common-law jurisdictions, courts have typically refused to intervene in companies' dividend policies, giving directors wide discretion as to the declaration or payment of dividends. The principle of non-interference was established in the Canadian case of <i>Burland v Earle</i> (1902), the British case of <i>Bond v Barrow Haematite Steel Co</i> (1902), and the Australian case of <i><a href="/wiki/Miles_v_Sydney_Meat-Preserving_Co_Ltd" title="Miles v Sydney Meat-Preserving Co Ltd">Miles v Sydney Meat-Preserving Co Ltd</a></i> (1912). However in <i>Sumiseki Materials Co Ltd v Wambo Coal Pty Ltd</i> (2013) the <a href="/wiki/Supreme_Court_of_New_South_Wales" title="Supreme Court of New South Wales">Supreme Court of New South Wales</a> broke with this precedent and recognised a shareholder's contractual right to a dividend.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Forms_of_payment">Forms of payment</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=2" title="Edit section: Forms of payment"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Cash dividends are the most common form of payment and are paid out in currency, usually via <a href="/wiki/Electronic_funds_transfer" title="Electronic funds transfer">electronic funds transfer</a> or a printed paper <a href="/wiki/Cheque" title="Cheque">check</a>. Such dividends are a form of investment income of the shareholder, usually treated as earned in the year they are paid (and not necessarily in the year a dividend was declared). For each share owned, a declared amount of money is distributed. Thus, if a person owns 100 shares and the cash dividend is 50 cents per share, the holder of the stock will be paid $50. Dividends paid are not classified as an <a href="/wiki/Expense" title="Expense">expense</a>, but rather a deduction of <a href="/wiki/Retained_earnings" title="Retained earnings">retained earnings</a>. Dividends paid does not appear on an <a href="/wiki/Income_statement" title="Income statement">income statement</a>, but does appear on the <a href="/wiki/Balance_sheet" title="Balance sheet">balance sheet</a>. </p><p>Different classes of stocks have different priorities when it comes to dividend payments. Preferred stocks have priority claims on a company's income. A company must pay dividends on its preferred shares before distributing income to common share shareholders. </p><p>Stock or scrip dividends are those paid out in the form of additional shares of the issuing corporation, or another corporation (such as its subsidiary corporation). They are usually issued in proportion to shares owned (for example, for every 100 shares of stock owned, a 5% stock dividend will yield 5 extra shares). </p><p>Nothing tangible will be gained if the stock is <a href="/wiki/Stock_split" title="Stock split">split</a> because the total number of shares increases, lowering the price of each share, without changing the total value of the shares held. (See also <a href="/wiki/Stock_dilution" title="Stock dilution">Stock dilution</a>.) </p><p>Stock dividend distributions do not affect the market capitalization of a company.<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> Stock dividends are not includable in the gross income of the shareholder for US income tax purposes. Because the shares are issued for proceeds equal to the pre-existing market price of the shares; there is no negative dilution in the amount recoverable.<sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup> </p><p>Property dividends or dividends <i>in specie</i> (<a href="/wiki/Latin_language" class="mw-redirect" title="Latin language">Latin</a> for "<a href="/wiki/In_kind" title="In kind">in kind</a>") are those paid out in the form of assets from the issuing corporation or another corporation, such as a subsidiary corporation. They are relatively rare and most frequently are securities of other companies owned by the issuer, however, they can take other forms, such as products and services. </p><p>Interim dividends are dividend payments made before a company's Annual General Meeting (AGM) and final financial statements. This declared dividend usually accompanies the company's interim financial statements. </p><p>Other dividends can be used in <a href="/wiki/Structured_finance" title="Structured finance">structured finance</a>. Financial assets with known market value can be distributed as dividends; warrants are sometimes distributed in this way. For large companies with subsidiaries, dividends can take the form of shares in a subsidiary company. A common technique for "spinning off" a company from its parent is to distribute shares in the new company to the old company's shareholders. The new shares can then be traded independently.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (October 2022)">citation needed</span></a></i>]</sup> </p> <div class="mw-heading mw-heading2"><h2 id="Payout_ratio">Payout ratio</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=3" title="Edit section: Payout ratio"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>A dividend payout ratio characterizes how much of a company's earnings (or its cash flow) is paid out in the form of dividends. </p><p>Most often, the payout ratio is calculated based on dividends per share and <a href="/wiki/Earnings_per_share" title="Earnings per share">earnings per share</a>:<sup id="cite_ref-12" class="reference"><a href="#cite_note-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> </p> <style data-mw-deduplicate="TemplateStyles:r996643573">.mw-parser-output .block-indent{padding-left:3em;padding-right:0;overflow:hidden}</style><div class="block-indent">Payout ratio = <span style="font-size:120%"><style data-mw-deduplicate="TemplateStyles:r1214402035">.mw-parser-output .sfrac{white-space:nowrap}.mw-parser-output .sfrac.tion,.mw-parser-output .sfrac .tion{display:inline-block;vertical-align:-0.5em;font-size:85%;text-align:center}.mw-parser-output .sfrac .num{display:block;line-height:1em;margin:0.0em 0.1em;border-bottom:1px solid}.mw-parser-output .sfrac .den{display:block;line-height:1em;margin:0.1em 0.1em}.mw-parser-output .sr-only{border:0;clip:rect(0,0,0,0);clip-path:polygon(0px 0px,0px 0px,0px 0px);height:1px;margin:-1px;overflow:hidden;padding:0;position:absolute;width:1px}</style><span class="sfrac">⁠<span class="tion"><span class="num">dividends per share</span><span class="sr-only">/</span><span class="den">earnings per share</span></span>⁠</span></span> × 100</div> <p>A payout ratio greater than 100% means the company paid out more in dividends for the year than it earned. </p><p>Since earnings are an accountancy measure, they do not necessarily closely correspond to the actual cash flow of the company. Hence another way to determine the safety of a dividend is to replace earnings in the payout ratio by <a href="/wiki/Free_cash_flow" title="Free cash flow">free cash flow</a>. Free cash flow is the business's operating cash flow minus its capital expenditures. It's a measure of how much incoming cash is "free" to pay out to stockholders and/or to grow the business. </p> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r996643573"><div class="block-indent">Free cash flow payout ratio = <span style="font-size:120%"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1214402035"><span class="sfrac">⁠<span class="tion"><span class="num">dividends per share</span><span class="sr-only">/</span><span class="den">free cash flow per share</span></span>⁠</span></span> × 100</div> <p>A free cash flow payout ratio greater than 100% means the company paid out more cash in dividends for the year than the "free" cash it took in. </p> <div class="mw-heading mw-heading2"><h2 id="Dividend_dates">Dividend dates</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=4" title="Edit section: Dividend dates"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>A dividend that is declared must be approved by a company's <a href="/wiki/Board_of_directors" title="Board of directors">board of directors</a> before it is paid. For <a href="/wiki/Public_company" title="Public company">public companies</a> in the US, four dates are relevant regarding dividends:<sup id="cite_ref-13" class="reference"><a href="#cite_note-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> The position in the UK is very similar, except that the expression "in-dividend date" is not used. </p><p><b>Declaration date</b> – the day the board of directors announces its intention to pay a dividend. On that day, a <a href="/wiki/Liability_(financial_accounting)" title="Liability (financial accounting)">liability</a> is created and the company records that liability on its books; it now owes the money to the shareholders. </p><p><b>In-dividend date</b> – the last day, which is one trading day before the <i>ex-dividend date</i>, where shares are said to be <i>cum dividend</i> ('with [<b>in</b>cluding] dividend'). That is, existing shareholders and anyone who buys the shares on this day will receive the dividend, and any shareholders who have sold the shares lose their right to the dividend. After this date the shares becomes <i>ex dividend</i>. </p><p><b><a href="/wiki/Ex-dividend_date" title="Ex-dividend date">Ex-dividend date</a></b> – the day on which shares bought and sold no longer come attached with the right to be paid the most recently declared dividend. In the United States and many European countries, it is typically one trading day before the <i>record date</i>. This is an important date for any company that has many shareholders, including those that trade on exchanges, to enable reconciliation of who is entitled to be paid the dividend. Existing shareholders will receive the dividend even if they sell the shares on or after that date, whereas anyone who bought the shares will not receive the dividend. It is relatively common for a share's price to decrease on the ex-dividend date by an amount roughly equal to the dividend being paid, which reflects the decrease in the company's assets resulting from the payment of the dividend. </p><p><b><a href="/wiki/Book_closure" class="mw-redirect" title="Book closure">Book closure date</a></b> – when a company announces a dividend, it will also announce the date on which the company will temporarily close its books for share transfers, which is also usually the record date. </p><p><b>Record date</b> – <a href="/wiki/Stockholder_of_Record" class="mw-redirect" title="Stockholder of Record">shareholders registered</a> in the company's record as of the record date will be paid the dividend, while shareholders who are not registered as of this date will not receive the dividend. Registration in most countries is essentially automatic for shares purchased before the ex-dividend date. </p><p><b>Payment date</b> – the day on which dividend cheques will actually be mailed to shareholders or the dividend amount credited to their bank account. </p> <div class="mw-heading mw-heading2"><h2 id="Dividend_frequency">Dividend frequency</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=5" title="Edit section: Dividend frequency"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <figure typeof="mw:File/Thumb"><a href="/wiki/File:International_dividend_frequencies.png" class="mw-file-description"><img alt="Typical dividend frequencies for different countries." src="//upload.wikimedia.org/wikipedia/commons/thumb/3/39/International_dividend_frequencies.png/350px-International_dividend_frequencies.png" decoding="async" width="350" height="59" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/3/39/International_dividend_frequencies.png/525px-International_dividend_frequencies.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/3/39/International_dividend_frequencies.png/700px-International_dividend_frequencies.png 2x" data-file-width="1111" data-file-height="186" /></a><figcaption>Typical dividend frequencies for different countries shown in a dividend calendar</figcaption></figure> <p>The dividend frequency is the number of dividend payments within a single business year.<sup id="cite_ref-14" class="reference"><a href="#cite_note-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> The most usual dividend frequencies are yearly, semi-annually, quarterly and monthly. Some common dividend frequencies are quarterly in the US, semi-annually in Japan, UK and Australia and annually in Germany. </p> <div class="mw-heading mw-heading2"><h2 id="Dividend-reinvestment">Dividend-reinvestment</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=6" title="Edit section: Dividend-reinvestment"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Some companies have <a href="/wiki/Dividend_reinvestment_plan" title="Dividend reinvestment plan">dividend reinvestment plans</a>, or DRIPs, not to be confused with scrips. DRIPs allow shareholders to use dividends to systematically buy small amounts of stock, usually with no commission and sometimes at a slight discount. In some cases, the shareholder might not need to pay taxes on these re-invested dividends, but in most cases they do. Utilizing a DRIP is a powerful investment tool because it takes advantage of both dollar cost averaging and compounding. Dollar cost averaging is the principle of investing a set amount of capital at recurring intervals. In this case, if the dividend is paid quarterly, then every quarter you are investing a set amount (the number of shares you own multiplied by the dividend per share). By doing this, you buy more shares when the price is low and fewer when the price is high. Additionally, the fractional shares that are purchased then begin paying dividends, compounding your investment and increasing the number of shares and total dividend earned each time a dividend distribution is made. </p> <div class="mw-heading mw-heading2"><h2 id="Law_and_government_policy_on_dividends">Law and government policy on dividends</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=7" title="Edit section: Law and government policy on dividends"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Dividend_tax" title="Dividend tax">Dividend tax</a></div> <p>Governments may adopt policies on dividend distribution for the protection of shareholders and the preservation of company viability, as well as treating dividends as a potential source of revenue.<sup id="cite_ref-bunney_15-0" class="reference"><a href="#cite_note-bunney-15"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup> </p><p>Most countries impose a <a href="/wiki/Corporate_tax" title="Corporate tax">corporate tax</a> on the profits made by a company. Many jurisdictions also impose a tax on dividends paid by a company to its shareholders (stockholders), but the tax treatment of a dividend income varies considerably between jurisdictions. The primary tax liability is that of the shareholder, although a tax obligation may also be imposed on the corporation in the form of a <a href="/wiki/Withholding_tax" class="mw-redirect" title="Withholding tax">withholding tax</a>. In some cases, the withholding tax may be the extent of the tax liability in relation to the dividend. A dividend tax is in addition to any tax imposed directly on the corporation on its profits.<sup id="cite_ref-16" class="reference"><a href="#cite_note-16"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup> </p><p>A dividend paid by a company is not an expense of the company. </p> <div class="mw-heading mw-heading3"><h3 id="Australia_and_New_Zealand">Australia and New Zealand</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=8" title="Edit section: Australia and New Zealand"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Australia and New Zealand have a <a href="/wiki/Dividend_imputation" title="Dividend imputation">dividend imputation</a> system, wherein companies can attach <a href="/wiki/Franking_credit" class="mw-redirect" title="Franking credit">franking credits</a> or <a href="/wiki/Dividend_imputation" title="Dividend imputation">imputation credits</a> to dividends. These franking credits represent the tax paid by the company upon its pre-tax profits. One dollar of company tax paid generates one franking credit. Companies can attach any proportion of franking up to a maximum amount that is calculated from the prevailing company tax rate: for each dollar of dividend paid, the maximum level of franking is the company tax rate divided by (1 − company tax rate). At the current 30% rate, this works out at 0.30 of a credit per 70 cents of dividend, or 42.857 cents per dollar of dividend. The shareholders who are able to use them, apply these credits against their income tax bills at a rate of a dollar per credit, thereby effectively eliminating the <a href="/wiki/Double_taxation" title="Double taxation">double taxation</a> of company profits. </p> <div class="mw-heading mw-heading3"><h3 id="India">India</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=9" title="Edit section: India"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In India, a company declaring or distributing dividends is required to pay a Corporate Dividend Tax in addition to the tax levied on their income. The dividend received by the shareholders is then exempt in their hands. Dividend-paying firms in India fell from 24 percent in 2001 to almost 19 percent in 2009 before rising to 19 percent in 2010.<sup id="cite_ref-17" class="reference"><a href="#cite_note-17"><span class="cite-bracket">[</span>17<span class="cite-bracket">]</span></a></sup> However, dividend income over and above <span style="white-space: nowrap"><a href="/wiki/Indian_rupee" title="Indian rupee">₹</a>1,000,000</span> attracts 10 percent dividend tax in the hands of the shareholder with effect from April 2016.<sup id="cite_ref-18" class="reference"><a href="#cite_note-18"><span class="cite-bracket">[</span>18<span class="cite-bracket">]</span></a></sup> Since the Budget 2020–2021, DDT has been abolished. Now, the Indian government taxes dividend income in the hands of investor according to income tax slab rates. </p> <div class="mw-heading mw-heading3"><h3 id="United_States_and_Canada">United States and Canada</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=10" title="Edit section: United States and Canada"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The United States and Canada impose a lower tax rate on dividend income than ordinary income, on the assertion that company profits had already been taxed as <a href="/wiki/Corporate_tax" title="Corporate tax">corporate tax</a>. In the United States, shareholders of corporations face <a href="/wiki/Double_taxation" title="Double taxation">double taxation</a> - taxes on both corporate profits and taxes on distribution of dividends. </p> <div class="mw-heading mw-heading3"><h3 id="United_Kingdom">United Kingdom</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=11" title="Edit section: United Kingdom"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The rules in Part 23 of the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> (sections 829-853) govern the payment of dividends to shareholders. The Act refers in this section to "distribution", covering any kind of distribution of a company's assets to its members (with some exceptions), "whether in cash or otherwise". A company is only able to make a distribution out of its accumulated, realised profits, "so far as not previously utilised by distribution or capitalisation, less its accumulated, realised losses, so far as not previously <a href="/wiki/Written_off" class="mw-redirect" title="Written off">written off</a> in a reduction or reorganisation of capital duly made".<sup id="cite_ref-19" class="reference"><a href="#cite_note-19"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup> </p><p>The <a href="/wiki/Government_of_the_United_Kingdom" title="Government of the United Kingdom">United Kingdom government</a> announced in 2018 that it was considering a review of the existing rules on dividend distribution following a consultation exercise on insolvency and corporate governance. The aim was to address concerns which had emerged where companies in financial distress were still able to distribute "significant dividends" to their shareholders.<sup id="cite_ref-bunney_15-1" class="reference"><a href="#cite_note-bunney-15"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup> A requirement has been proposed under which the largest companies would be required to publish a distribution policy statement covering dividend distribution.<sup id="cite_ref-20" class="reference"><a href="#cite_note-20"><span class="cite-bracket">[</span>20<span class="cite-bracket">]</span></a></sup> </p><p>The law in <a href="/wiki/England_and_Wales" title="England and Wales">England and Wales</a> regarding dividend payment was clarified in 2018 by the <a href="/wiki/England_and_Wales_Court_of_Appeal" class="mw-redirect" title="England and Wales Court of Appeal">England and Wales Court of Appeal</a> in the case of <i>Global Corporate Ltd v Hale</i> [2018] EWCA Civ 2618. Certain payments made to a director/shareholder had been treated by the High Court as <i><a href="/wiki/Quantum_meruit" title="Quantum meruit">quantum meruit</a></i> payments to Hale in his capacity as a company director but the Appeal Court reversed this judgment and treated the payments as dividends. At the time of payment they had been treated as "dividends" payable from an anticipated profit. The company subsequently went into <a href="/wiki/Liquidation" title="Liquidation">liquidation</a>; an attempt to recharacterise the payments as payments for services rendered was held to be unlawful.<sup id="cite_ref-21" class="reference"><a href="#cite_note-21"><span class="cite-bracket">[</span>21<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Effect_on_stock_price">Effect on stock price</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=12" title="Edit section: Effect on stock price"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>After a stock goes ex-dividend (when a dividend has just been paid, so there is no anticipation of another imminent dividend payment), the stock price should drop. </p><p>To calculate the amount of the drop, the traditional method is to view the financial effects of the dividend from the perspective of the company. Since the company has paid say £<i>x</i> in dividends per share out of its cash account on the left hand side of the balance sheet, the equity account on the right side should decrease an equivalent amount. This means that a £<i>x</i> dividend should result in a £<i>x</i> drop in the share price. </p><p>A more accurate method of calculating the fall in price is to look at the share price and dividend from the after-tax perspective of a shareholder. The after-tax drop in the share price (or capital gain/loss) should be equivalent to the after-tax dividend. For example, if the tax of capital gains <i>T</i><sub>cg</sub> is 35%, and the tax on dividends <i>T</i><sub>d</sub> is 15%, then a £1 dividend is equivalent to £0.85 of after-tax money. To get the same financial benefit from a, the after-tax capital loss value should equal £0.85. The pre-tax capital loss would be <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1214402035"><span class="sfrac">⁠<span class="tion"><span class="num">£0.85</span><span class="sr-only">/</span><span class="den">1 − <i>T</i><sub>cg</sub></span></span>⁠</span> = <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1214402035"><span class="sfrac">⁠<span class="tion"><span class="num">£0.85</span><span class="sr-only">/</span><span class="den">1 − 0.35</span></span>⁠</span> = <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1214402035"><span class="sfrac">⁠<span class="tion"><span class="num">£0.85</span><span class="sr-only">/</span><span class="den">0.65</span></span>⁠</span> = £1.31. In this case, a dividend of £1 has led to a larger drop in the share price of £1.31, because the tax rate on capital losses is higher than the dividend tax rate. However in many countries the stock market is dominated by institutions which pay no additional tax on dividends received (as opposed to tax on overall profits). If that is the case, then the share price should fall by the full amount of the dividend. </p><p>Finally, security analysis that does not take dividends into account may mute the decline in share price, for example in the case of a <a href="/wiki/Price%E2%80%93earnings_ratio" title="Price–earnings ratio">price–earnings ratio</a> target that does not back out cash; or amplify the decline when comparing different periods. </p><p>The effect of a dividend payment on share price is an important reason why it can sometimes be desirable to exercise an <a href="/wiki/American_option" class="mw-redirect" title="American option">American option</a> early. </p> <div class="mw-heading mw-heading3"><h3 id="Criticism_and_analysis">Criticism and analysis</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=13" title="Edit section: Criticism and analysis"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Some<sup class="noprint Inline-Template" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Manual_of_Style/Words_to_watch#Unsupported_attributions" title="Wikipedia:Manual of Style/Words to watch"><span title="The material near this tag possibly uses too-vague attribution or weasel words. (July 2022)">who?</span></a></i>]</sup> believe company profits are best re-invested in the company with actions such as research and development, capital investment or expansion. Proponents of this view (and thus critics of dividends per se) suggest that an eagerness to return profits to shareholders may indicate the management having run out of good ideas for the future of the company. A counter-argument to this position came from <a href="/wiki/Peter_Lynch" title="Peter Lynch">Peter Lynch</a> of <a href="/wiki/Fidelity" title="Fidelity">Fidelity</a> investments, who declared: "One strong argument in favor of companies that pay dividends is that companies that don’t pay dividends have a sorry history of blowing the money on a string of stupid diworseifications";<sup id="cite_ref-22" class="reference"><a href="#cite_note-22"><span class="cite-bracket">[</span>22<span class="cite-bracket">]</span></a></sup> using his self-created term for diversification that results in worse effects, not better. Additionally, studies have demonstrated that companies that pay dividends have higher earnings growth, suggesting dividend payments may be evidence of confidence in earnings growth and sufficient profitability to fund future expansion.<sup id="cite_ref-23" class="reference"><a href="#cite_note-23"><span class="cite-bracket">[</span>23<span class="cite-bracket">]</span></a></sup> <a href="/wiki/Benjamin_Graham" title="Benjamin Graham">Benjamin Graham</a> and <a href="/wiki/David_Dodd" title="David Dodd">David Dodd</a> wrote in <i><a href="/wiki/Securities_Analysis" class="mw-redirect" title="Securities Analysis">Securities Analysis</a></i> (1934): "The prime purpose of a business corporation is to pay dividends to its owners. A successful company is one that can pay dividends regularly and presumably increase the rate as time goes on."<sup id="cite_ref-24" class="reference"><a href="#cite_note-24"><span class="cite-bracket">[</span>24<span class="cite-bracket">]</span></a></sup> </p><p>Other studies indicate that dividend-paying stocks tend to offer superior long-term performance relative to the overall market at least in developed economies,<sup id="cite_ref-25" class="reference"><a href="#cite_note-25"><span class="cite-bracket">[</span>25<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-26" class="reference"><a href="#cite_note-26"><span class="cite-bracket">[</span>26<span class="cite-bracket">]</span></a></sup> relative to a <a href="/wiki/Stock_index" class="mw-redirect" title="Stock index">stock index</a> such as the S&P 500<sup id="cite_ref-27" class="reference"><a href="#cite_note-27"><span class="cite-bracket">[</span>27<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-Patel_2006_28-0" class="reference"><a href="#cite_note-Patel_2006-28"><span class="cite-bracket">[</span>28<span class="cite-bracket">]</span></a></sup> or <a href="/wiki/Dow_Jones_Industrial_Average" title="Dow Jones Industrial Average">Dow Jones Industrial Average</a><sup id="cite_ref-29" class="reference"><a href="#cite_note-29"><span class="cite-bracket">[</span>29<span class="cite-bracket">]</span></a></sup> or relative to stocks that do not pay dividends.<sup id="cite_ref-Patel_2006_28-1" class="reference"><a href="#cite_note-Patel_2006-28"><span class="cite-bracket">[</span>28<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-30" class="reference"><a href="#cite_note-30"><span class="cite-bracket">[</span>30<span class="cite-bracket">]</span></a></sup> Several explanations have been proposed for this outperformance such as dividends being associated with <a href="/wiki/Value_stocks" class="mw-redirect" title="Value stocks">value stocks</a> which are themselves associated with long-term outperformance;<sup id="cite_ref-31" class="reference"><a href="#cite_note-31"><span class="cite-bracket">[</span>31<span class="cite-bracket">]</span></a></sup> being more durable in crashes or <a href="/wiki/Bear_market" class="mw-redirect" title="Bear market">bear markets</a>;<sup id="cite_ref-32" class="reference"><a href="#cite_note-32"><span class="cite-bracket">[</span>32<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-33" class="reference"><a href="#cite_note-33"><span class="cite-bracket">[</span>33<span class="cite-bracket">]</span></a></sup> being associated with profitable companies exhibiting high levels of <a href="/wiki/Free_cashflow" class="mw-redirect" title="Free cashflow">free cashflow</a>; and being associated with mature, unfashionable companies that are overlooked by many investors and thus an effective <a href="/wiki/Contrarian_investing" title="Contrarian investing">contrarian strategy</a>.<sup id="cite_ref-34" class="reference"><a href="#cite_note-34"><span class="cite-bracket">[</span>34<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-Siegel_2005_35-0" class="reference"><a href="#cite_note-Siegel_2005-35"><span class="cite-bracket">[</span>35<span class="cite-bracket">]</span></a></sup> Assett managers at <a href="/wiki/Tweedy,_Browne" title="Tweedy, Browne">Tweedy, Browne</a><sup id="cite_ref-36" class="reference"><a href="#cite_note-36"><span class="cite-bracket">[</span>36<span class="cite-bracket">]</span></a></sup> and <a href="/wiki/Capital_Group_Companies" title="Capital Group Companies">Capital Group</a><sup id="cite_ref-37" class="reference"><a href="#cite_note-37"><span class="cite-bracket">[</span>37<span class="cite-bracket">]</span></a></sup> have suggested dividends are an effective measure of a given company's overall financial status. </p><p>Shareholders in companies that pay little or no cash dividends can potentially reap the benefit of the company's profits when they sell their shareholding, or when a company is wound down and all assets <a href="/wiki/Liquidated" class="mw-redirect" title="Liquidated">liquidated</a> and distributed amongst shareholders. However, data from professor <a href="/wiki/Jeremy_Siegel" title="Jeremy Siegel">Jeremy Siegel</a> found stocks that do not pay dividends tend to have worse long-term performance, as a group, than the general stock market and also perform worse than dividend-paying stocks.<sup id="cite_ref-Siegel_2005_35-1" class="reference"><a href="#cite_note-Siegel_2005-35"><span class="cite-bracket">[</span>35<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading4"><h4 id="Tax_implications">Tax implications</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=14" title="Edit section: Tax implications"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Taxation of dividends is often used as justification for retaining earnings, or for performing a <a href="/wiki/Share_repurchase" title="Share repurchase">stock buyback</a>, in which the company buys back stock, thereby increasing the value of the stock left outstanding. </p><p>When dividends are paid, individual shareholders in many countries suffer from <a href="/wiki/Dividend_tax" title="Dividend tax">double taxation</a> of those dividends: </p> <ol><li>the company pays income tax to the government when it earns any income, and then</li> <li>when the dividend is paid, the individual shareholder pays income tax on the dividend payment.</li></ol> <p>In many countries, the tax rate on dividend income is lower than for other forms of income to compensate for tax paid at the corporate level. </p><p>A capital gain should not be confused with a dividend. Generally, a capital gain occurs where a capital asset is sold for an amount greater than the amount of its cost at the time the investment was purchased. A dividend is a parsing out a share of the profits, and is taxed at the dividend tax rate. If there is an increase of value of stock, and a shareholder chooses to sell the stock, the shareholder will pay a tax on capital gains (often taxed at a lower rate than <a href="/wiki/Ordinary_income" title="Ordinary income">ordinary income</a>). If a holder of the stock chooses to not participate in the buyback, the price of the holder's shares could rise (as well as it could fall), but the tax on these gains is delayed until the sale of the shares. </p><p>Certain types of specialized investment companies (such as a <a href="/wiki/Real_estate_investment_trust" title="Real estate investment trust">REIT</a> in the U.S.) allow the shareholder to partially or fully avoid double taxation of dividends. </p> <div class="mw-heading mw-heading2"><h2 id="Other_corporate_entities">Other corporate entities</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=15" title="Edit section: Other corporate entities"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading3"><h3 id="Cooperatives">Cooperatives</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=16" title="Edit section: Cooperatives"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Cooperative" title="Cooperative">Cooperative</a> businesses may retain their earnings, or distribute part or all of them as dividends to their members. They distribute their dividends in proportion to their members' activity, instead of the value of members' shareholding. Therefore, co-op dividends are often treated as pre-tax <a href="/wiki/Operating_expense" title="Operating expense">expenses</a>. In other words, local tax or accounting rules may treat a dividend as a form of customer rebate or a staff bonus to be deducted from turnover before profit (<a href="/wiki/Tax_profit" class="mw-redirect" title="Tax profit">tax profit</a> or <a href="/wiki/Operating_profit" class="mw-redirect" title="Operating profit">operating profit</a>) is calculated. </p><p><a href="/wiki/Consumers%27_cooperative" class="mw-redirect" title="Consumers' cooperative">Consumers' cooperatives</a> allocate dividends according to their members' trade with the co-op. For example, a <a href="/wiki/Credit_union" title="Credit union">credit union</a> will pay a dividend to represent <a href="/wiki/Interest" title="Interest">interest</a> on a saver's deposit. A retail co-op store chain may return a percentage of a member's purchases from the co-op, in the form of cash, store credit, or <a href="/wiki/Equity_(finance)" title="Equity (finance)">equity</a>. This type of dividend is sometimes known as a patronage dividend or <b>patronage refund</b>, as well as being informally named <i>divi</i> or <i>divvy</i>.<sup id="cite_ref-Ace-Hardware-Mar-2001-10-K405_38-0" class="reference"><a href="#cite_note-Ace-Hardware-Mar-2001-10-K405-38"><span class="cite-bracket">[</span>38<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-39" class="reference"><a href="#cite_note-39"><span class="cite-bracket">[</span>39<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-40" class="reference"><a href="#cite_note-40"><span class="cite-bracket">[</span>40<span class="cite-bracket">]</span></a></sup> </p><p>Producer cooperatives, such as <a href="/wiki/Worker_cooperative" title="Worker cooperative">worker cooperatives</a>, allocate dividends according to their members' contribution, such as the hours they worked or their salary.<sup id="cite_ref-41" class="reference"><a href="#cite_note-41"><span class="cite-bracket">[</span>41<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Trusts">Trusts<span class="anchor" id="Dividends_from_trusts"></span></h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=17" title="Edit section: Trusts"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In <a href="/wiki/Real_estate_investment_trust" title="Real estate investment trust">real estate investment trusts</a> and <a href="/wiki/Royalty_trust" title="Royalty trust">royalty trusts</a>, the distributions paid often will be consistently greater than the company earnings. This can be sustainable because the accounting earnings do not recognize any increasing value of real estate holdings and resource reserves. If there is no economic increase in the value of the company's assets then the excess distribution (or dividend) will be a <a href="/wiki/Return_of_capital" title="Return of capital">return of capital</a> and the <a href="/wiki/Book_value" title="Book value">book value</a> of the company will have shrunk by an equal amount. This may result in <a href="/wiki/Capital_gain" title="Capital gain">capital gains</a> which may be taxed differently from dividends representing distribution of earnings. </p><p>The distribution of profits by other forms of <a href="/wiki/Mutual_organization" title="Mutual organization">mutual organization</a> also varies from that of <a href="/wiki/Joint-stock_company" title="Joint-stock company">joint-stock companies</a>, though may not take the form of a dividend. </p><p>In the case of <a href="/wiki/Mutual_insurance" title="Mutual insurance">mutual insurance</a>, for example, in the United States, a distribution of profits to holders of <a href="/wiki/Participating_policy" class="mw-redirect" title="Participating policy">participating life policies</a> is called a <i>dividend</i>. These profits are generated by the investment returns of the insurer's general account, in which premiums are invested and from which claims are paid.<sup id="cite_ref-42" class="reference"><a href="#cite_note-42"><span class="cite-bracket">[</span>42<span class="cite-bracket">]</span></a></sup> The participating dividend may be used to decrease premiums, or to increase the cash value of the policy.<sup id="cite_ref-43" class="reference"><a href="#cite_note-43"><span class="cite-bracket">[</span>43<span class="cite-bracket">]</span></a></sup> Some life policies pay nonparticipating dividends. As a contrasting example, in the United Kingdom, the surrender value of a <a href="/wiki/With-profits_policy" title="With-profits policy">with-profits policy</a> is increased by a <i>bonus</i>, which also serves the purpose of distributing profits. <a href="/wiki/Life_insurance" title="Life insurance">Life insurance</a> dividends and bonuses, while typical of mutual insurance, are also paid by some joint stock insurers. </p><p>Insurance dividend payments are not restricted to life policies. For example, general insurer <a href="/wiki/State_Farm_Insurance" class="mw-redirect" title="State Farm Insurance">State Farm</a> Mutual Automobile Insurance Company can distribute dividends to its vehicle insurance policyholders.<sup id="cite_ref-44" class="reference"><a href="#cite_note-44"><span class="cite-bracket">[</span>44<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=18" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1184024115">.mw-parser-output .div-col{margin-top:0.3em;column-width:30em}.mw-parser-output .div-col-small{font-size:90%}.mw-parser-output .div-col-rules{column-rule:1px solid #aaa}.mw-parser-output .div-col dl,.mw-parser-output .div-col ol,.mw-parser-output .div-col ul{margin-top:0}.mw-parser-output .div-col li,.mw-parser-output .div-col dd{page-break-inside:avoid;break-inside:avoid-column}</style><div class="div-col" style="column-width: 50em;"> <ul><li><a href="/wiki/Citizen%27s_dividend" title="Citizen's dividend">Citizen's dividend</a></li> <li><a href="/wiki/Common_stock_dividend" title="Common stock dividend">Common stock dividend</a></li> <li><a href="/wiki/Capital_structure_substitution_theory#Dividend_policy" title="Capital structure substitution theory">CSS dividend policy</a></li> <li><a href="/wiki/Direct_debit_dividend_contributions" title="Direct debit dividend contributions">Direct debit dividend contributions</a></li> <li><a href="/wiki/Dividend_policy" title="Dividend policy">Dividend policy</a></li> <li><a href="/wiki/Dividend_units" title="Dividend units">Dividend units</a></li> <li><a href="/wiki/Dividend_yield" title="Dividend yield">Dividend yield</a></li> <li><a href="/wiki/Employee_stock_ownership" title="Employee stock ownership">Employee stock ownership</a></li> <li><a href="/wiki/Freedom_dividend" class="mw-redirect" title="Freedom dividend">Freedom dividend</a></li> <li><a href="/wiki/Liquidating_dividend" class="mw-redirect" title="Liquidating dividend">Liquidating dividend</a></li> <li><a href="/wiki/List_of_companies_paying_scrip_dividends" title="List of companies paying scrip dividends">List of companies paying scrip dividends</a></li> <li><a href="/wiki/Qualified_dividend" title="Qualified dividend">Qualified dividend</a></li> <li><a href="/wiki/Social_dividend" title="Social dividend">Social dividend</a></li></ul> </div> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=19" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist reflist-columns references-column-width" style="column-width: 30em;"> <ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite id="CITEREFFrankJagannathan1998" class="citation journal cs1">Frank, Murray; Jagannathan, Ravi (February 15, 1998). <a rel="nofollow" class="external text" href="https://www.sciencedirect.com/science/article/pii/S0304405X97800530">"Why do stock prices drop by less than the value of the dividend? 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Higher Dividends equal Higher Earnings Growth". <i>Financial Analysts Journal</i>. <a href="/wiki/SSRN_(identifier)" class="mw-redirect" title="SSRN (identifier)">SSRN</a> <a rel="nofollow" class="external text" href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=390143">390143</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Financial+Analysts+Journal&rft.atitle=Surprise%21+Higher+Dividends+equal+Higher+Earnings+Growth&rft.date=2003-01%2F2003-02&rft_id=https%3A%2F%2Fpapers.ssrn.com%2Fsol3%2Fpapers.cfm%3Fabstract_id%3D390143%23id-name%3DSSRN&rft.au=Robert+D.+Arnott&rft.au=Clifford+S.+Asness&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADividend" class="Z3988"></span></span> </li> <li id="cite_note-24"><span class="mw-cite-backlink"><b><a href="#cite_ref-24">^</a></b></span> <span class="reference-text">Benjamin Graham and David Dodd (1934; Sixth Edition, 2009). McGraw-Hill, p. 367</span> </li> <li id="cite_note-25"><span class="mw-cite-backlink"><b><a href="#cite_ref-25">^</a></b></span> <span class="reference-text">A. Michael Keppler. <a rel="nofollow" class="external text" href="https://jpm.pm-research.com/content/17/2/24">The Importance of Dividend Yields in Country Selection</a>. Financial Analyst Journal, Winter 1991</span> </li> <li id="cite_note-26"><span class="mw-cite-backlink"><b><a href="#cite_ref-26">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFLevis1989" class="citation journal cs1">Levis, Mario (September 1, 1989). "Stock market anomalies: A re-assessment based on the UK evidence". <i>Journal of Banking & Finance</i>. <b>13</b> (4): 675–696. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1016%2F0378-4266%2889%2990037-X">10.1016/0378-4266(89)90037-X</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Journal+of+Banking+%26+Finance&rft.atitle=Stock+market+anomalies%3A+A+re-assessment+based+on+the+UK+evidence&rft.volume=13&rft.issue=4&rft.pages=675-696&rft.date=1989-09-01&rft_id=info%3Adoi%2F10.1016%2F0378-4266%2889%2990037-X&rft.aulast=Levis&rft.aufirst=Mario&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADividend" class="Z3988"></span></span> </li> <li id="cite_note-27"><span class="mw-cite-backlink"><b><a href="#cite_ref-27">^</a></b></span> <span class="reference-text">Siegel (2005) found ranking stocks within the S&P 500 by dividend yield rather than <a href="/wiki/Market_capitalization" title="Market capitalization">market capitalization</a>, and rebalancing annually, led to long-term outperformance of the overall index by over 2% a year, and even greater outperformance relative to the non-dividend stocks within the S&P 500.</span> </li> <li id="cite_note-Patel_2006-28"><span class="mw-cite-backlink">^ <a href="#cite_ref-Patel_2006_28-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Patel_2006_28-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text">P.N. Patel, et al., <a rel="nofollow" class="external text" href="https://www.themoneysnowball.com/wp-content/uploads/2017/04/cash-is-king.pdf">High Yield, Low Payout</a>. Credit Suisse Quantitative Research, August 2006.</span> </li> <li id="cite_note-29"><span class="mw-cite-backlink"><b><a href="#cite_ref-29">^</a></b></span> <span class="reference-text">Cai, Renjie. Which one is better: Investing in High Dividend or Low Dividend stocks?. Diss. University of Nevada, Reno, 2014.</span> </li> <li id="cite_note-30"><span class="mw-cite-backlink"><b><a href="#cite_ref-30">^</a></b></span> <span class="reference-text">Siegel, 2005</span> </li> <li id="cite_note-31"><span class="mw-cite-backlink"><b><a href="#cite_ref-31">^</a></b></span> <span class="reference-text">"Dividend yield is also commonly associated with style investing, with growth stocks characterized as having low dividend yields and value stocks as having high dividend yields. Studies have found that value stocks outperform growth stocks in the long run." Conover, C. Mitchell, Gerald R. Jensen, and Marc W. Simpson. "What difference do dividends make?." Financial Analysts Journal 72.6 (2016): 28-40.</span> </li> <li id="cite_note-32"><span class="mw-cite-backlink"><b><a href="#cite_ref-32">^</a></b></span> <span class="reference-text">"Dividend-paying stocks outperform non-dividend-paying stocks by 1 to 2% more per month in declining markets than in advancing markets. These results are economically and statistically significant and robust to many risk adjustments and across industries." Kathleen P. Fuller, Michael A. Goldstein. Do dividends matter more in declining markets? Journal of Corporate Finance, Volume 17, Issue 3. 2011, Pages 457-473, ISSN 0929-1199, <a rel="nofollow" class="external free" href="https://doi.org/10.1016/j.jcorpfin.2011.01.001">https://doi.org/10.1016/j.jcorpfin.2011.01.001</a></span> </li> <li id="cite_note-33"><span class="mw-cite-backlink"><b><a href="#cite_ref-33">^</a></b></span> <span class="reference-text">"In the <a href="/wiki/Black_Monday_(1987)" title="Black Monday (1987)">wipeout of 1987</a>, the high-dividend payers fared better than the nondividend payers and suffered less than half the decline of the general market." Peter Lynch and John Rothschild (1989) <i>One Up on Wall Street: How To Use What You Already Know To Make Money In The Market</i> Simon & Schuster, ISBN 0671661035; Chapter 13.</span> </li> <li id="cite_note-34"><span class="mw-cite-backlink"><b><a href="#cite_ref-34">^</a></b></span> <span class="reference-text"><a href="/wiki/David_Dreman" title="David Dreman">David Dreman</a> (1998). Contrarian Investment Strategies: The Next Generation. Free Press, ISBN 0684813505</span> </li> <li id="cite_note-Siegel_2005-35"><span class="mw-cite-backlink">^ <a href="#cite_ref-Siegel_2005_35-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Siegel_2005_35-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><a href="/wiki/Jeremy_Siegel" title="Jeremy Siegel">Jeremy Siegel</a> (2005. The Future for Investors: Why the Tried and the True Triumph Over the Bold and the New. Currency, ISBN 140008198X</span> </li> <li id="cite_note-36"><span class="mw-cite-backlink"><b><a href="#cite_ref-36">^</a></b></span> <span class="reference-text">In a 2007 report, <a rel="nofollow" class="external text" href="https://www.tweedy.com/resources/library_docs/papers/HighDivStudyFUND2014Web.pdf">revised 2014</a>, Tweedy, Browne wrote: "The ability to pay cash dividends is a positive factor in assessing the underlying health of a company and the quality of its earnings. This is particularly pertinent in light of the complexity of corporate accounting and numerous examples of “earnings management,” including occasionally fraudulent earnings manipulation."</span> </li> <li id="cite_note-37"><span class="mw-cite-backlink"><b><a href="#cite_ref-37">^</a></b></span> <span class="reference-text">In a <a rel="nofollow" class="external text" href="https://www.morningstar.com/podcasts/the-long-view/bcc67667-1924-457c-aa7c-8d155591e442">2024 interview</a>, Jody Johnsson of Capital Group stated: "... I think dividends are a very important signal of financial health and of management discipline. How management thinks about the dividend and how they think about the need to generate consistent cash flow in order to pay it is very important." </span> </li> <li id="cite_note-Ace-Hardware-Mar-2001-10-K405-38"><span class="mw-cite-backlink"><b><a href="#cite_ref-Ace-Hardware-Mar-2001-10-K405_38-0">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://edgar.secdatabase.com/1499/202401000003/filing-main.htm">"Ace Hardware, Form 10-K405, Filing Date Mar 22, 2001"</a>. secdatabase.com<span class="reference-accessdate">. Retrieved <span class="nowrap">May 14,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Ace+Hardware%2C+Form+10-K405%2C+Filing+Date+Mar+22%2C+2001&rft.pub=secdatabase.com&rft_id=http%3A%2F%2Fedgar.secdatabase.com%2F1499%2F202401000003%2Ffiling-main.htm&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADividend" class="Z3988"></span></span> </li> <li id="cite_note-39"><span class="mw-cite-backlink"><b><a href="#cite_ref-39">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation news cs1"><a rel="nofollow" class="external text" href="http://news.bbc.co.uk/1/hi/business/6247926.stm">"Co-op pays out £19.6m in 'divi'<span class="cs1-kern-right"></span>"</a>. <a href="/wiki/BBC_News" title="BBC News">BBC News</a> via <a href="/wiki/Bbc.co.uk" class="mw-redirect" title="Bbc.co.uk">bbc.co.uk</a>. June 28, 2007<span class="reference-accessdate">. Retrieved <span class="nowrap">May 15,</span> 2008</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.atitle=Co-op+pays+out+%C2%A319.6m+in+%27divi%27&rft.date=2007-06-28&rft_id=http%3A%2F%2Fnews.bbc.co.uk%2F1%2Fhi%2Fbusiness%2F6247926.stm&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADividend" class="Z3988"></span></span> </li> <li id="cite_note-40"><span class="mw-cite-backlink"><b><a href="#cite_ref-40">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFNikola_BalnaveGreg_Patmore" class="citation web cs1">Nikola Balnave & Greg Patmore. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20081004152045/http://www.historycooperative.org/proceedings/asslh/balnave.html">"The History Cooperative – Conference Proceedings - ASSLH - Rochdale consumer co-operatives and Australian labour history"</a>. Archived from <a rel="nofollow" class="external text" href="http://www.historycooperative.org/proceedings/asslh/balnave.html">the original</a> on October 4, 2008.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=The+History+Cooperative+%E2%80%93+Conference+Proceedings+-+ASSLH+-+Rochdale+consumer+co-operatives+and+Australian+labour+history&rft.au=Nikola+Balnave&rft.au=Greg+Patmore&rft_id=http%3A%2F%2Fwww.historycooperative.org%2Fproceedings%2Fasslh%2Fbalnave.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADividend" class="Z3988"></span></span> </li> <li id="cite_note-41"><span class="mw-cite-backlink"><b><a href="#cite_ref-41">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFNorris2007" class="citation news cs1">Norris, Sue (March 3, 2007). <a rel="nofollow" class="external text" href="https://www.theguardian.com/business/2007/mar/30/smes.technology">"Cooperatives pay big dividends"</a>. <i>The Guardian</i><span class="reference-accessdate">. Retrieved <span class="nowrap">June 9,</span> 2009</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=The+Guardian&rft.atitle=Cooperatives+pay+big+dividends&rft.date=2007-03-03&rft.aulast=Norris&rft.aufirst=Sue&rft_id=https%3A%2F%2Fwww.theguardian.com%2Fbusiness%2F2007%2Fmar%2F30%2Fsmes.technology&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADividend" class="Z3988"></span></span> </li> <li id="cite_note-42"><span class="mw-cite-backlink"><b><a href="#cite_ref-42">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://web.archive.org/web/20080511213614/http://www.newyorklife.com/cda/0,3254,10542,00.html">"What Are Dividends?"</a>. <a href="/wiki/New_York_Life" class="mw-redirect" title="New York Life">New York Life</a>. Archived from <a rel="nofollow" class="external text" href="http://www.newyorklife.com/cda/0,3254,10542,00.html">the original</a> on May 11, 2008<span class="reference-accessdate">. Retrieved <span class="nowrap">April 29,</span> 2008</span>. <q>In short, the portion of the premium determined not to have been necessary to provide coverage and benefits, to meet expenses, and to maintain the company's financial position, is returned to policyowners in the form of dividends.</q></cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=What+Are+Dividends%3F&rft.pub=New+York+Life&rft_id=http%3A%2F%2Fwww.newyorklife.com%2Fcda%2F0%2C3254%2C10542%2C00.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADividend" class="Z3988"></span></span> </li> <li id="cite_note-43"><span class="mw-cite-backlink"><b><a href="#cite_ref-43">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFHoboken,_NJ2002" class="citation book cs1">Hoboken, NJ (2002). "24, Investment-Oriented Life Insurance". In Fabozzi, Frank J. (ed.). <a rel="nofollow" class="external text" href="https://books.google.com/books?id=F1hk6UFlsUsC"><i>Handbook of Financial Instruments</i></a>. Wiley. p. 591. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-0-471-22092-3" title="Special:BookSources/978-0-471-22092-3"><bdi>978-0-471-22092-3</bdi></a>. <a href="/wiki/OCLC_(identifier)" class="mw-redirect" title="OCLC (identifier)">OCLC</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/oclc/52323583">52323583</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=bookitem&rft.atitle=24%2C+Investment-Oriented+Life+Insurance&rft.btitle=Handbook+of+Financial+Instruments&rft.pages=591&rft.pub=Wiley&rft.date=2002&rft_id=info%3Aoclcnum%2F52323583&rft.isbn=978-0-471-22092-3&rft.au=Hoboken%2C+NJ&rft_id=https%3A%2F%2Fbooks.google.com%2Fbooks%3Fid%3DF1hk6UFlsUsC&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADividend" class="Z3988"></span></span> </li> <li id="cite_note-44"><span class="mw-cite-backlink"><b><a href="#cite_ref-44">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation news cs1"><a rel="nofollow" class="external text" href="http://www.statefarm.com/about/media/media_releases/auto_dividends.asp">"State Farm Announces $1.25 Billion Mutual Auto Policyholder Dividend"</a>. <a href="/wiki/State_Farm" title="State Farm">State Farm</a>. March 1, 2007.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.atitle=State+Farm+Announces+%241.25+Billion+Mutual+Auto+Policyholder+Dividend&rft.date=2007-03-01&rft_id=http%3A%2F%2Fwww.statefarm.com%2Fabout%2Fmedia%2Fmedia_releases%2Fauto_dividends.asp&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADividend" class="Z3988"></span></span> </li> </ol></div> <div class="mw-heading mw-heading2"><h2 id="External_links">External links</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Dividend&action=edit&section=20" title="Edit section: External links"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1235681985">.mw-parser-output .side-box{margin:4px 0;box-sizing:border-box;border:1px solid #aaa;font-size:88%;line-height:1.25em;background-color:var(--background-color-interactive-subtle,#f8f9fa);display:flow-root}.mw-parser-output .side-box-abovebelow,.mw-parser-output .side-box-text{padding:0.25em 0.9em}.mw-parser-output .side-box-image{padding:2px 0 2px 0.9em;text-align:center}.mw-parser-output .side-box-imageright{padding:2px 0.9em 2px 0;text-align:center}@media(min-width:500px){.mw-parser-output .side-box-flex{display:flex;align-items:center}.mw-parser-output .side-box-text{flex:1;min-width:0}}@media(min-width:720px){.mw-parser-output .side-box{width:238px}.mw-parser-output .side-box-right{clear:right;float:right;margin-left:1em}.mw-parser-output .side-box-left{margin-right:1em}}</style><style data-mw-deduplicate="TemplateStyles:r1237033735">@media print{body.ns-0 .mw-parser-output .sistersitebox{display:none!important}}@media screen{html.skin-theme-clientpref-night .mw-parser-output .sistersitebox img[src*="Wiktionary-logo-en-v2.svg"]{background-color:white}}@media 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Policy</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20211216235405/https://studyfinance.com/dividend-policy/">Archived</a> December 16, 2021, at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a> from studyfinance.com at the <a href="/wiki/University_of_Arizona" title="University of Arizona">University of Arizona</a></li> <li><a rel="nofollow" class="external text" href="https://web.archive.org/web/20071128090709/http://tscpa.com/Journal/articles/dividend_tax_cut_traps.pdf">The new U.S. dividend tax cut traps</a> from Tennessee CPA Journal, Nov. 2004</li> <li><a rel="nofollow" class="external text" href="https://www.svtuition.com/2023/07/how-to-earn-money-from-dividends.html">Learn Strategy to Earn Money from Dividends</a></li></ul> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1236075235">.mw-parser-output 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.mw-parser-output .navbox{display:none!important}}</style></div><div role="navigation" class="navbox" aria-labelledby="Financial_markets" style="padding:3px"><table class="nowraplinks hlist mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Financial_markets_navigation" title="Template:Financial markets navigation"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Financial_markets_navigation" title="Template talk:Financial markets navigation"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Financial_markets_navigation" title="Special:EditPage/Template:Financial markets navigation"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Financial_markets" style="font-size:114%;margin:0 4em"><a href="/wiki/Financial_market" title="Financial market">Financial markets</a></div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%">Types of <a href="/wiki/Capital_market" title="Capital market">markets</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Primary_market" title="Primary market">Primary market</a></li> <li><a href="/wiki/Secondary_market" title="Secondary market">Secondary market</a></li> <li><a href="/wiki/Third_market" title="Third market">Third market</a></li> <li><a href="/wiki/Fourth_market" title="Fourth market">Fourth market</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Types of <a href="/wiki/Stock" title="Stock">stocks</a></th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Common_stock" title="Common stock">Common stock</a></li> <li><a href="/wiki/Golden_share" title="Golden share">Golden share</a></li> <li><a href="/wiki/Preferred_stock" title="Preferred stock">Preferred stock</a></li> <li><a href="/wiki/Restricted_stock" title="Restricted stock">Restricted stock</a></li> <li><a href="/wiki/Tracking_stock" title="Tracking stock">Tracking stock</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/Share_capital" title="Share capital">Share capital</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Authorised_capital" title="Authorised capital">Authorised capital</a></li> <li><a href="/wiki/Issued_shares" title="Issued shares">Issued shares</a></li> <li><a href="/wiki/Shares_outstanding" title="Shares outstanding">Shares outstanding</a></li> <li><a href="/wiki/Treasury_stock" title="Treasury stock">Treasury stock</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Participants</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Broker" title="Broker">Broker</a> <ul><li><a href="/wiki/Floor_broker" title="Floor broker">Floor broker</a></li> <li><a href="/wiki/Inter-dealer_broker" title="Inter-dealer broker">Inter-dealer broker</a></li></ul></li> <li><a href="/wiki/Broker-dealer" title="Broker-dealer">Broker-dealer</a></li> <li><a href="/wiki/Market_maker" title="Market maker">Market maker</a></li> <li><a href="/wiki/Trader_(finance)" title="Trader (finance)">Trader</a> <ul><li><a href="/wiki/Floor_trader" title="Floor trader">Floor trader</a></li> <li><a href="/wiki/Proprietary_trading" title="Proprietary trading">Proprietary trader</a></li></ul></li> <li><a href="/wiki/Quantitative_analyst" class="mw-redirect" title="Quantitative analyst">Quantitative analyst</a></li> <li><a href="/wiki/Investor" title="Investor">Investor</a></li> <li><a href="/wiki/Hedge_(finance)" title="Hedge (finance)">Hedger</a></li> <li><a href="/wiki/Speculator" class="mw-redirect" title="Speculator">Speculator</a></li> <li><a href="/wiki/Arbitrage" title="Arbitrage">Arbitrager</a> <ul><li><a href="/wiki/Scalping_(trading)" title="Scalping (trading)">Scalper</a></li></ul></li> <li><a href="/wiki/Financial_regulation" title="Financial regulation">Regulator</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Trading venues</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Exchange_(organized_market)" title="Exchange (organized market)">Exchange</a> <ul><li><a href="/wiki/List_of_stock_exchanges" class="mw-redirect" title="List of stock exchanges">List of stock exchanges</a></li> <li><a href="/wiki/List_of_stock_exchange_trading_hours" class="mw-redirect" title="List of stock exchange trading hours">Trading hours</a></li></ul></li> <li><a href="/wiki/Over-the-counter_(finance)" title="Over-the-counter (finance)">Over-the-counter</a> (off-exchange)</li> <li><a href="/wiki/Alternative_trading_system" title="Alternative trading system">Alternative trading system</a> (ATS)</li> <li><a href="/wiki/Multilateral_trading_facility" title="Multilateral trading facility">Multilateral trading facility</a> (MTF)</li> <li><a href="/wiki/Electronic_communication_network" title="Electronic communication network">Electronic communication network</a> (ECN)</li> <li><a href="/wiki/Direct_market_access" title="Direct market access">Direct market access</a> (DMA)</li> <li><a href="/wiki/Straight-through_processing" title="Straight-through processing">Straight-through processing</a> (STP)</li> <li><a href="/wiki/Dark_pool" title="Dark pool">Dark pool</a> (private exchange)</li> <li><a href="/wiki/Crossing_network" title="Crossing network">Crossing network</a></li> <li><a href="/wiki/Foreign_exchange_aggregator" title="Foreign exchange aggregator">Liquidity aggregator</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/Stock_valuation" title="Stock valuation">Stock valuation</a></th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Alpha_(finance)" title="Alpha (finance)">Alpha</a></li> <li><a href="/wiki/Arbitrage_pricing_theory" title="Arbitrage pricing theory">Arbitrage pricing theory</a> (APT)</li> <li><a href="/wiki/Beta_(finance)" title="Beta (finance)">Beta</a></li> <li><a href="/wiki/Buffett_indicator" title="Buffett indicator">Buffett indicator</a> (Cap-to-GDP)</li> <li><a href="/wiki/Book_value" title="Book value">Book value</a> (BV)</li> <li><a href="/wiki/Capital_asset_pricing_model" title="Capital asset pricing model">Capital asset pricing model</a> (CAPM)</li> <li><a href="/wiki/Capital_market_line" title="Capital market line">Capital market line</a> (CML)</li> <li><a href="/wiki/Dividend_discount_model" title="Dividend discount model">Dividend discount model</a> (DDM)</li> <li><a href="/wiki/Dividend_yield" title="Dividend yield">Dividend yield</a></li> <li><a href="/wiki/Earnings_yield" title="Earnings yield">Earnings yield</a></li> <li><a href="/wiki/EV/EBITDA" class="mw-redirect" title="EV/EBITDA">EV/EBITDA</a></li> <li><a href="/wiki/Fed_model" title="Fed model">Fed model</a></li> <li><a href="/wiki/Net_asset_value" title="Net asset value">Net asset value</a> (NAV)</li> <li><a href="/wiki/Security_characteristic_line" title="Security characteristic line">Security characteristic line</a></li> <li><a href="/wiki/Security_market_line" title="Security market line">Security market line</a> (SML)</li> <li><a href="/wiki/T-model" title="T-model">T-model</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Trading theories<br /> and <a href="/wiki/Trading_strategy" title="Trading strategy">strategies</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Algorithmic_trading" title="Algorithmic trading">Algorithmic trading</a></li> <li><a href="/wiki/Buy_and_hold" title="Buy and hold">Buy and hold</a></li> <li><a href="/wiki/Contrarian_investing" title="Contrarian investing">Contrarian investing</a></li> <li><a href="/wiki/Dollar_cost_averaging" title="Dollar cost averaging">Dollar cost averaging</a></li> <li><a href="/wiki/Efficient-market_hypothesis" title="Efficient-market hypothesis">Efficient-market hypothesis</a> (EMH)</li> <li><a href="/wiki/Fundamental_analysis" title="Fundamental analysis">Fundamental analysis</a></li> <li><a href="/wiki/Growth_stock" title="Growth stock">Growth stock</a></li> <li><a href="/wiki/Market_timing" title="Market timing">Market timing</a></li> <li><a href="/wiki/Modern_portfolio_theory" title="Modern portfolio theory">Modern portfolio theory</a> (MPT)</li> <li><a href="/wiki/Momentum_investing" title="Momentum investing">Momentum investing</a></li> <li><a href="/wiki/Mosaic_theory_(investments)" title="Mosaic theory (investments)">Mosaic theory</a></li> <li><a href="/wiki/Pairs_trade" title="Pairs trade">Pairs trade</a></li> <li><a href="/wiki/Post-modern_portfolio_theory" title="Post-modern portfolio theory">Post-modern portfolio theory</a> (PMPT)</li> <li><a href="/wiki/Random_walk_hypothesis" title="Random walk hypothesis">Random walk hypothesis</a> (RMH)</li> <li><a href="/wiki/Sector_rotation" title="Sector rotation">Sector rotation</a></li> <li><a href="/wiki/Style_investing" title="Style investing">Style investing</a></li> <li><a href="/wiki/Swing_trading" title="Swing trading">Swing trading</a></li> <li><a href="/wiki/Technical_analysis" title="Technical analysis">Technical analysis</a></li> <li><a href="/wiki/Trend_following" title="Trend following">Trend following</a></li> <li><a href="/wiki/Value_averaging" title="Value averaging">Value averaging</a></li> <li><a href="/wiki/Value_investing" title="Value investing">Value investing</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Related terms</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Bid%E2%80%93ask_spread" title="Bid–ask spread">Bid–ask spread</a></li> <li><a href="/wiki/Block_trade" title="Block trade">Block trade</a></li> <li><a href="/wiki/Cross_listing" title="Cross listing">Cross listing</a></li> <li><a class="mw-selflink selflink">Dividend</a></li> <li><a href="/wiki/Dual-listed_company" title="Dual-listed company">Dual-listed company</a></li> <li><a href="/wiki/DuPont_analysis" title="DuPont analysis">DuPont analysis</a></li> <li><a href="/wiki/Efficient_frontier" title="Efficient frontier">Efficient frontier</a></li> <li><a href="/wiki/Financial_law" title="Financial law">Financial law</a></li> <li><a href="/wiki/Flight-to-quality" title="Flight-to-quality">Flight-to-quality</a></li> <li><a href="/wiki/Government_bond" title="Government bond">Government bond</a></li> <li><a href="/wiki/Greenspan_put" title="Greenspan put">Greenspan put</a></li> <li><a href="/wiki/Haircut_(finance)" title="Haircut (finance)">Haircut</a></li> <li><a href="/wiki/Initial_public_offering" title="Initial public offering">Initial public offering</a> (IPO)</li> <li><a href="/wiki/Long_(finance)" title="Long (finance)">Long</a></li> <li><a href="/wiki/Mandatory_offer" title="Mandatory offer">Mandatory offer</a></li> <li><a href="/wiki/Margin_(finance)" title="Margin (finance)">Margin</a></li> <li><a href="/wiki/Market_anomaly" title="Market anomaly">Market anomaly</a></li> <li><a href="/wiki/Market_capitalization" title="Market capitalization">Market capitalization</a></li> <li><a href="/wiki/Market_depth" title="Market depth">Market depth</a></li> <li><a href="/wiki/Market_manipulation" title="Market manipulation">Market manipulation</a></li> <li><a href="/wiki/Market_trend" title="Market trend">Market trend</a></li> <li><a href="/wiki/Mean_reversion_(finance)" title="Mean reversion (finance)">Mean reversion</a></li> <li><a href="/wiki/Momentum_(finance)" title="Momentum (finance)">Momentum</a></li> <li><a href="/wiki/Open_outcry" title="Open outcry">Open outcry</a></li> <li><a href="/wiki/Order_book" title="Order book">Order book</a></li> <li><a href="/wiki/Position_(finance)" title="Position (finance)">Position</a></li> <li><a href="/wiki/Public_float" title="Public float">Public float</a></li> <li><a href="/wiki/Public_offering" title="Public offering">Public offering</a></li> <li><a href="/wiki/Rally_(stock_market)" title="Rally (stock market)">Rally</a></li> <li><a href="/wiki/Returns-based_style_analysis" title="Returns-based style analysis">Returns-based style analysis</a></li> <li><a href="/wiki/Reverse_stock_split" title="Reverse stock split">Reverse stock split</a></li> <li><a href="/wiki/Share_repurchase" title="Share repurchase">Share repurchase</a></li> <li><a href="/wiki/Short_(finance)" title="Short (finance)">Short selling</a></li> <li><a href="/wiki/Short_squeeze" title="Short squeeze">Short squeeze</a></li> <li><a href="/wiki/Slippage_(finance)" title="Slippage (finance)">Slippage</a></li> <li><a href="/wiki/Speculation" title="Speculation">Speculation</a></li> <li><a href="/wiki/Squeeze-out" title="Squeeze-out">Squeeze-out</a></li> <li><a href="/wiki/Stock_dilution" title="Stock dilution">Stock dilution</a></li> <li><a href="/wiki/Stock_exchange" title="Stock exchange">Stock exchange</a></li> <li><a href="/wiki/Stock_market_index" title="Stock market index">Stock market index</a></li> <li><a href="/wiki/Stock_split" title="Stock split">Stock split</a></li> <li><a href="/wiki/Stock_swap" title="Stock swap">Stock swap</a></li> <li><a href="/wiki/Trade_(financial_instrument)" class="mw-redirect" title="Trade (financial instrument)">Trade</a></li> <li><a href="/wiki/Tender_offer" title="Tender offer">Tender offer</a></li> <li><a href="/wiki/Uptick_rule" title="Uptick rule">Uptick rule</a></li> <li><a href="/wiki/Volatility_(finance)" title="Volatility (finance)">Volatility</a></li> <li><a href="/wiki/Voting_interest" title="Voting interest">Voting interest</a></li> <li><a href="/wiki/Yield_(finance)" title="Yield (finance)">Yield</a></li></ul> </div></td></tr></tbody></table></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"><style data-mw-deduplicate="TemplateStyles:r1038841319">.mw-parser-output .tooltip-dotted{border-bottom:1px dotted;cursor:help}</style><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1038841319"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1038841319"></div><div role="navigation" class="navbox authority-control" aria-labelledby="Authority_control_databases_frameless&#124;text-top&#124;10px&#124;alt=Edit_this_at_Wikidata&#124;link=https&#58;//www.wikidata.org/wiki/Q181201#identifiers&#124;class=noprint&#124;Edit_this_at_Wikidata" style="padding:3px"><table class="nowraplinks hlist mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><div id="Authority_control_databases_frameless&#124;text-top&#124;10px&#124;alt=Edit_this_at_Wikidata&#124;link=https&#58;//www.wikidata.org/wiki/Q181201#identifiers&#124;class=noprint&#124;Edit_this_at_Wikidata" style="font-size:114%;margin:0 4em"><a href="/wiki/Help:Authority_control" title="Help:Authority control">Authority control databases</a> <span class="mw-valign-text-top noprint" typeof="mw:File/Frameless"><a href="https://www.wikidata.org/wiki/Q181201#identifiers" title="Edit this at Wikidata"><img alt="Edit this at Wikidata" src="//upload.wikimedia.org/wikipedia/en/thumb/8/8a/OOjs_UI_icon_edit-ltr-progressive.svg/10px-OOjs_UI_icon_edit-ltr-progressive.svg.png" decoding="async" width="10" height="10" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/8/8a/OOjs_UI_icon_edit-ltr-progressive.svg/15px-OOjs_UI_icon_edit-ltr-progressive.svg.png 1.5x, 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class="external text" href="https://data.bnf.fr/ark:/12148/cb11971925c">BnF data</a></span></span></li><li><span class="uid"><a rel="nofollow" class="external text" href="https://id.ndl.go.jp/auth/ndlna/00562824">Japan</a></span></li><li><span class="uid"><span class="rt-commentedText tooltip tooltip-dotted" title="dividendy"><a rel="nofollow" class="external text" href="https://aleph.nkp.cz/F/?func=find-c&local_base=aut&ccl_term=ica=ph1236659&CON_LNG=ENG">Czech Republic</a></span></span></li><li><span class="uid"><a rel="nofollow" class="external text" href="http://olduli.nli.org.il/F/?func=find-b&local_base=NLX10&find_code=UID&request=987007557950205171">Israel</a></span></li></ul></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Other</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"><ul><li><span class="uid"><a rel="nofollow" class="external text" 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