In finance, the term “dividend” defines the portion of a corporation’s profits which it pays out to you as its shareholder. That is why dividends are sometimes described, albeit incorrectly, as stock yield rates.

How many dividends you receive is decided by a vote of the corporation’s board. Dividends are typically paid out at the end of the year.

In the case of a non-corporate company (a Swiss GmbH, for example), the term “profit distribution” is used instead.

In Switzerland, dividends count as taxable income.

More on this topic:
How are stock dividends taxed?
Stock dividends in Switzerland

About moneyland.ch

moneyland.ch is Switzerland’s independent online comparison service covering banking, insurance and telecom. More than 100 unbiased comparison tools and calculators are available on moneyland.ch, along with useful financial guides and timely news. The comprehensive comparison tools help you to find the right insurance policies, bank accounts, credit and prepaid cards, loans, mortgages, trading accounts and telecom products for your needs.