What is a Dividend?

What is a Dividend?

You may receive a dividend if you own shares in a Company.  Unlike a salary, a dividend is paid out of post tax profits, based on the earnings of the Company.

The amount of dividend paid is decided by the Board of Directors, who can equally make the decision to not pay any dividend at all if they feel that they need to re-invest profits back into the Company.

Anita Forrest
About Anita Forrest

Anita Forrest is a Chartered Accountant, spreadsheet geek, money nerd and creator of www.goselfemployed.co - the UK small business finance blog for the self-employed community. Here she shares simple, straight-forward guides to make self-employment topics like taxes, bookkeeping and banking easy to understand.