Dividend

Cash a company hands back to shareholders out of profit

In detail

A dividend is part of the profit paid out to shareholders in cash. How often it is paid varies by company, and it is quoted per share. Whether to pay and how much is the company's choice, so a bad year can bring a cut or a suspension. Some companies pay nothing on purpose, putting the money into growth instead.

Example

At $60 per share a year, holding 200 shares pays $12,000 before tax.

Differences by country

Japan — Japanese companies typically pay once or twice a year.

South Korea — Korean companies can pay a year-end dividend, one interim dividend if their articles allow, and listed companies quarterly ones. Since 2023 they may also fix the amount first and the record date afterwards, so record dates differ by company.

Related terms

Read in the app (App Store)

For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.