dividendi

Dividendi are distributions of a company's earnings paid to shareholders. In many languages, dividendi is the plural form of dividend (dividendo) and is used to refer to multiple such payments. Dividends provide investors with income and can reflect a company’s profitability and cash-generating ability.

Dividendi come in several forms. The most common is a cash dividend, where cash is paid per share. Stock dividends issue additional shares instead of cash. Special or extraordinary dividends are one-off payments outside the ordinary dividend schedule. Some companies also pay property or in-kind dividends.

Key dates and concepts accompany dividend payments. A board of directors declares a dividend, setting a payment date. The ex-dividend date determines ownership rights for the upcoming payment; buyers on or after this date are not entitled to the declared dividend. The record date identifies registered shareholders eligible to receive the dividend. Metrics used by investors include dividend per share (DPS), dividend yield (annual DPS divided by the stock price), and payout ratio (dividends divided by earnings).

Taxation and policy vary by jurisdiction. Dividends are often taxed as income, with rates and credits differing by country. Companies balance dividend payments with reinvestment needs, debt obligations, and regulatory constraints. Dividend policies range from stable, predictable payouts to more flexible or residual approaches.

Impact on markets and investors can occur when dividends are announced or changed. In many cases, the stock price adjusts on the ex-dividend date by an amount close to the dividend value, reflecting the transfer of cash to shareholders.