Dividend
A dividend is a cash or share distribution that a company may pay to shareholders from profits, reserves, or another approved source.
Glossary
Dividend glossary.
Plain-English definitions for dividend terms used across DividendTen guides, calculators, market hubs, and data stories. Each term includes an example, a caveat, and contextual links.
This glossary is educational context only and is not financial advice, tax advice, legal advice, or personalized financial guidance.
How to use this glossary
Use the glossary when a dividend calendar, yield table, calculator, or guide uses a term that needs a quick definition. The entries are educational, not personalized advice.
Every definition links back into DividendTen guides, tools, or market context so readers can move from a short explanation to a fuller workflow with methodology and disclaimer notes.
D
Dividend cut
A dividend cut happens when a company reduces its dividend compared with a prior comparable payment or policy level.
Dividend reinvestment plan
A dividend reinvestment plan, often shortened to DRIP, lets eligible shareholders reinvest dividends into additional shares instead of receiving cash.
Dividend suspension
A dividend suspension means a company has paused dividend payments that readers may have expected from a prior pattern or policy.
Dividend yield
Dividend yield is a percentage that compares annual dividend income with a share price or benchmark value.
E
Ex-dividend date
The ex-dividend date is the first trading date when buying a share usually no longer gives the buyer the right to receive the next declared dividend.
F
Final dividend
A final dividend is a dividend declared for a completed financial year, often after final results and required approvals.
Franking credit
A franking credit is an Australian tax credit attached to some dividends where company tax has already been paid on the profits being distributed.
G
Gross dividend yield
Gross dividend yield is a yield figure before selected deductions or adjustments such as personal tax, withholding tax, fees, or some jurisdiction-specific credits.
I
Interim dividend
An interim dividend is a dividend declared before the end of a company’s full financial year or before final annual results are approved.
P
Payment date
The payment date is the date when a company schedules the declared dividend to be paid to eligible holders.
Payout ratio
Payout ratio compares dividends with a measure such as earnings, free cash flow, or distributable income.
R
Record date
The record date is the date a company uses to identify which shareholders are recorded as eligible for a declared dividend.
S
Special dividend
A special dividend is an extra or non-recurring dividend that is separate from a company’s regular dividend pattern.
T
Trailing dividend yield
Trailing dividend yield uses dividends from a past period, often the last twelve months, compared with a price or benchmark value.