What is a dividend and why is it paid? What is a dividend and why is it paid? "A dividend is a distribution of a company's profits to the shareholders of that company.
A dividend is a distribution of a company's profits to the shareholders of that company.
Dividends come from the companies profits during the financial year.
You can find information about past dividends, ex-dividend dates, payment dates and other dividend information in the Markets & Research section when you log into your account.
A special dividend may occasionally be paid to customers on top of the normal dividends and is usually paid because of an event that has led to the Company gaining money outside of its business plan.
To return some of this capital to the shareholders a special dividend is paid. Special dividends are treated in exactly the same way as other dividends with regards to the HM Revenue & Customs (HMRC) tax rules and are paid net of tax, which is deducted at source.
To find out how you qualify for a dividend, please see the below.
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