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.

About Anita Forrest

Anita Forrest is a Chartered Accountant, spreadsheet geek, money nerd and creator of www.goselfemployed.co - a website full of templates, guides and resources for UK sole traders. No faff. No confusion. Just simple straightforward advice on business registration, taxes and bookkeeping.