All terms
Dividend (Dividende)
The part of its profit that a company pays out to its shareholders.
When a company makes a profit, it can pay part of it to shareholders. This payment is a dividend. German companies usually pay once a year after the annual general meeting; US companies often pay quarterly.
A dividend is not guaranteed. In bad years it may be cut or cancelled. On the business day after the meeting, the ex-dividend date, the share price usually drops by roughly the dividend amount.
Example: you own 50 shares and the dividend is 2 euros per share, so you receive 100 euros gross. Above your saver's allowance, the bank deducts capital gains tax automatically.