Complete Dividend Guide 2023: Everything You Need to Know

▶ Fundamental Concepts of Dividend Payments

Dividends represent the compensation received by shareholders for holding stakes in a company. It is a distribution of corporate profits that incentivizes capital investment in stock market securities. Major global corporations such as Apple, Microsoft, Santander, JP Morgan, and other companies from various sectors implement monthly dividend payment systems 2023 to reward their investors.

Companies distribute these payments based on the number of shares each investor owns. This mechanism has become a key strategy to attract and retain institutional and retail investment.

▶ Payment Methods: Cash and Shares

There are two main ways in which monthly dividends 2023 are executed:

Cash Payment: This is the most common option among investors, as it provides immediate liquidity without increasing shareholding.

Share Payment: In this case, the company grants purchase rights to shareholders, which are subsequently traded on the market. This modality allows increasing the number of shares without additional outlay.

Classification by Dividend Type

Ordinary Dividend: Paid according to the company’s operational performance forecasts during the fiscal year.

Complementary Dividend: Paid once forecasts are confirmed, especially when results exceed initial expectations.

Extraordinary Dividend: Arises from one-time income such as asset sales or business participations.

▶ Essential Schedule: Key Dates for Investors

To avoid missing dividend collection opportunities in monthly dividends 2023, it is essential to understand four critical dates:

1. Declaration Date - The Shareholders’ Meeting announces the distribution, establishing the amount and payment schedule.

2. Record Date - Shareholders eligible for payment are registered. You must be the owner of the shares at this moment.

3. Ex-Dividend Date - The cutoff point. Those holding shares until this day are entitled to the payment, even if they sell afterward. Buyers after this date will not receive the current dividend.

4. Payment Date - Cash payment to authorized shareholders.

▶ Company References and Schedule 2023

Below is the schedule of major corporations:

Note: Some dates are estimates based on information available as of July 2023.

▶ Factors Impacting Dividends

Deterioration of Results: If business performance does not meet forecasts, the amount may be reduced or suspended. Some companies maintain payments using reserves to avoid stock market sanctions.

Unexpected Financial Risks: Litigation, economic crises, or stressful situations can lead to temporary suspension of monthly dividends 2023.

Regulatory Restrictions: Governments may prohibit distributions in rescued companies during systemic crises.

Extraordinary Income: Surpluses or asset sales generate additional extraordinary dividends.

Mergers and Acquisitions Operations: In takeover processes, the new shareholder may cancel payments for stability reasons.

▶ Dividend Calculation: Practical Formulas

Dividend per Share (DPA)

The formula is:

DPA = Distributable Profits / Total Shares Outstanding

Dividend Yield (RD)

To measure profitability on the initial investment:

RD = (DPA / Current Share Price) × 100

Practical Example

Suppose Example Bank generates profits of 10 million euros and allocates 80% (8 million) to dividend payments. With 340 million shares outstanding:

DPA = 8,000,000 / 340,000,000 = 0.0235 €

If the share trades at 1.50 €:

RD = (0.0235 / 1.50) × 100 = 1.56%

This metric allows comparing attractiveness among investments in different securities.

▶ Taxation of Dividends in 2023

Dividends constitute a taxable event subject to withholding tax. In systems like Spain’s, taxation varies depending on the payment modality:

For Cash Payments:

• Up to €6,000 taxed at 19%
• Between €6,000 and €50,000 at 21%
• Between €50,000 and €200,000 at 23%
• Over €200,000 at 26%

For Share Payments: Taxation is deferred until the sale, using as the calculation base the original purchase price weighted with the new shares received.

It is important to note that investment funds apply automatic withholding, while direct shares require manual management.

▶ Monthly Dividend Strategy 2023

To maximize returns, investors should:

1. Plan considering ex-dividend dates of stocks in their portfolio
2. Monitor changes in profit forecasts affecting payments
3. Calculate expected yields using DPA and RD formulas
4. Account for tax implications in different jurisdictions
5. Diversify across sectors and geographies to balance risks

Specialized platforms like Bloomberg, Reuters, and Infobolsa publish updated calendars for ongoing tracking of monthly dividends 2023.