The Definition of A Dividend
A dividend is a payment made by a company to its shareholders, usually on a quarterly basis. Companies are not required to issue dividends, but many do so as an incentive for shareholders to own stock in their businesses. When issuing a dividend, a company distributes a percentage of its profits among shareholders, often in the form of a check or cash deposit. Shareholders pay taxes on their dividend income according to their respective tax brackets.
- Obama’s truth: Taxes or debt Jan 27, 2012 - The Boston Globe
- Thousands of federal workers owe back taxes Jan 27, 2012 - CBS
- A Political Tip Sheet For The Rest Of Us Jan 26, 2012 - Associated Press
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A dividend tax hike will be insignificant. |
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The maximum tax rate on dividend income will surge by 164%—from 15% to 39.6%—if Congress doesn't act to stop a dividend tax hike. |