What is the dividend?

Total return is an important performance metric to follow for dividend investors as it factors in the value of the dividend in its performance calculations. Dividend investors also typically have the option to reinvest dividends paid which helps to increase the total return of the investment. read more

A dividend is defined as a payment made by a corporation to its shareholders. read more

Dividends from UK companies are paid out of profits after corporation tax (Corporation tax is at 20% but decreases to 19% from 1 April 2017 - split periods have pro-rata applied). Dividend income is taxable on UK residents at the rate of 7.5% for basic rate payers, 32.5% for higher rate tax payers and 38.1% for additional rate payers. read more