How often are dividends paid?

It depends on the company: quarterly is standard in the US; annual or semi-annual in Europe. Some companies and ETFs pay monthly. Each company publishes its calendar in advance.

Why does the share price fall on the ex-dividend date?

Because the company is worth exactly that much less: the cash to be distributed is no longer inside. The theoretical drop equals the dividend amount, even if market noise hides it.

How are dividends taxed in Spain?

As savings income in the IRPF, withheld from 19%. Foreign dividends also suffer their country's withholding at source, partially recoverable through double-taxation treaties.

Dividends | Wiki Por Dividendos

Dividends are the portion of profit a company decides to distribute among its shareholders. If you own shares of a profitable business, the dividend is your slice of the pie: a cash payment (sometimes shares) for every share you hold, typically paid quarterly, semi-annually or annually.

For long-term investors they are the most tangible form of return: they do not depend on selling the stock or on the market's mood, but on the business generating cash and management deciding to share it.

Where a dividend comes from

From profit — and more precisely, from cash. A company earning 1,000 million can distribute 400 and reinvest 600 in growth. The distributed share is the payout ratio, and its sustainability depends on earnings and free cash flow keeping up year after year. A dividend paid with debt has an expiry date.

Dividends

Where a dividend comes from

Types of dividend

The dates that matter

How to evaluate a dividend

Common mistakes

Frequently asked questions