Dividendet

Dividendet is a term used in corporate finance to denote the portion of a company's earnings that is distributed to its shareholders as a dividend. It is determined by the board of directors and, in many jurisdictions, approved by the shareholders. Dividendet can be paid in cash per share, as stock dividends (additional shares), or in rare cases as property, and it may include a one-off or special dividend when profits allow.

Key concepts linked to Dividendet include the dividend per share (DPS), which expresses the amount paid for each share, and the dividend yield, which compares the dividend to the market price of the stock. The payout ratio, typically calculated as dividends divided by net income or free cash flow, indicates how much of profits are returned to investors. Important dates in relation to Dividendet are the declaration date, ex-dividend date, record date, and payment date. On the ex-dividend date, buyers of the stock are not entitled to receive the upcoming dividend, and the share price often adjusts downward by an amount close to the dividend.

Legal and tax considerations surround Dividendet. Dividends are usually paid from distributable profits and reduce shareholders’ equity; distributions must not jeopardize the company’s solvency. Tax treatment varies by jurisdiction and can affect both the rate and method of taxation for individual and corporate investors. Some countries apply withholding tax on dividends for non-residents.

In practice, Dividendet is a central metric for income-focused investors and for assessing a company’s dividend policy, which can be stable, progressive, or residual. It interacts with other capital-return mechanisms such as share buybacks and is influenced by a company’s cash flow and growth prospects.