Wiki de Términos Avanzados
Explora nuestra enciclopedia financiera. Conceptos complejos explicados de forma sencilla para potenciar tu estrategia de inversión.
Resources to apply the wiki
Dividend tax in Spain
Review IRPF, W-8BEN, withholding tax, double taxation and information filings.
Compare brokers
Compare fees, custody, FX and tax workflow for dividend investing.
W-8BEN form
Understand how US dividend withholding can be reduced when applicable.
DRIP simulator
Estimate the long-term effect of reinvesting dividends in your portfolio.
Compound interest
Project contributions, expected return and investment horizon.
6
A
B
C
Capital Gains
The profit made when selling an asset for more than it cost. In Spain it is taxed in the savings base, with a FIFO rule and loss offsetting.
CFD
A derivative that tracks an asset's price without owning it, with leverage. Brokers are required to disclose that most retail accounts lose money.
Compound Interest
The process by which interest or returns are reinvested and generate additional returns over time.
D
DCA Dollar Cost Averaging
A strategy of investing periodic amounts to reduce the emotional and timing impact of choosing a single entry point.
Defensive Stock
A company whose business tends to hold up better in recessions because it sells essential goods or services and has relatively stable cash flows.
Distributing ETF
An ETF that periodically pays investors the dividends or coupons received from its underlying assets.
Dividend Aristocrats
Companies with a long record of annual dividend increases, usually within a specific index definition.
Dividend Growth
Sustained growth in dividend per share over time, ideally supported by rising earnings and cash flow.
Dividend Kings
Companies that have increased dividends for at least five consecutive decades under common market criteria.
Dividend Reinvestment
Using received dividends to buy more assets and accelerate portfolio compounding.
Dividend Trap
A stock whose high dividend yield hides a deteriorating business and a likely dividend cut.
Dividend Yield
The percentage that relates a stock expected annual dividend to its current market price.
Dividends
A portion of profit or cash that a company distributes to shareholders periodically or exceptionally.
Double Taxation
A situation where the same income can be taxed in two different jurisdictions.
Drawdown
The fall of a portfolio from its last peak to the subsequent trough. It measures the loss you would have suffered buying at the worst moment.
DRIP
An automatic dividend reinvestment plan that buys new shares with distributed cash.
E
Earnings per Share (EPS)
Net profit attributable to each share. The basis for valuation ratios and for measuring dividend sustainability.
Economic Moat
The "moat" that protects a company's profits from competition. Without one, there are no decades of growing dividends.
Emergency Fund
A cushion of 3–6 months of expenses in cash, built before investing. It is what keeps you from selling your portfolio at the worst moment.
ETFs
Exchange traded funds that allow investors to access a diversified basket of assets with one market transaction.
Ex-Dividend Date
The date from which a stock trades without the right to receive the next declared dividend.
F
F.I.R.E.
A financial independence movement focused on building enough wealth to choose whether to keep working or retire early.
FOGAIN
Spain's investment guarantee fund: covers up to €100,000 per holder if your broker goes bankrupt. What it does not cover: market losses.
Four Percent Rule
A rule of thumb for estimating retirement withdrawals from a portfolio, usually based on a first-year withdrawal adjusted for inflation.
Free Cash Flow
Cash a company generates after funding its investments. The real source of sustainable dividends.
I
M
Margin of Safety
The discount between a stock's estimated intrinsic value and its market price. The cornerstone of Benjamin Graham's value investing.
Modelo 720
Spain's informative declaration of foreign assets: mandatory if you exceed €50,000 per block (accounts, securities or property). Nothing is paid, but it must be filed.
MSCI World
The global benchmark index: about 1,400 companies from 23 developed countries, weighted by market cap. The base of most index portfolios.
P
P/E Ratio
Price-to-earnings ratio: how many years of current earnings you pay when buying a stock. The most used valuation metric — and the easiest to misread.
Payment Date
The day a declared dividend is actually credited to shareholders' accounts — the last of the four dates in the dividend calendar and the only one where money moves.
Payout Ratio
The share of earnings a company pays out as dividends. It helps investors judge whether a dividend is sustainable.
R
Rebalancing
Returning a portfolio to its target weights by selling what has risen or buying what has fallen. A risk-control tool, not a return booster.
REITs
Listed real estate vehicles that let investors access income-producing property, with specific dividend, debt and tax considerations.
S
Scrip Dividend
A dividend you can take in cash or in new shares. Popular among European companies; read the fine print.
Share Buyback
The company buys and retires its own shares: each remaining share represents more earnings and more future dividend. The "silent dividend".
SPAC
A "blank-check" shell that lists without a business in order to merge with a private company later. A speculative vehicle with a poor record for retail investors.
Special Dividend
A one-off payment outside the ordinary dividend policy, usually after an asset sale or excess cash build-up. It does not count towards sustainable yield.
Spread
The difference between an asset's buy (ask) and sell (bid) price. The hidden cost of every trade, even at "commission-free" brokers.