Börsenlexikon: Dividend

The dividend is the amount of retained earnings attributable to a single share. It is expressed as a percentage of the nominal value or in CHF per share. While shares are always entitled to a dividend, this does not mean that a dividend is actually paid out every year. As a rule, the dividend is paid out annually, in other countries (e.g. USA) often quarterly as a quarterly dividend. The dividend is approved by the general meeting of the corporation.

Dividends belong to investment income and must be taxed as income, just like interest payments. Before paying out the dividend, a corporation domiciled in Switzerland deducts 35% of the amount as withholding tax. The withholding tax can be reclaimed by means of a declaration in the tax return.