Cash dividend

Dividend amount actually paid out to shareholders

Companies must pay corporate tax on distributed profits. This tax is subtracted from the gross dividend before it is paid out to shareholders. The resulting amount – i.e. the gross dividend minus corporate tax – is called a cash dividend.

For example:

  •  Gross dividend: €3
  •  Corporate tax (25%): €0.75
  •  Cash dividend: €2.25

Synonyms: net dividend

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