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

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Expert Benjamin Manz
Benjamin Manz is CEO of moneyland.ch and an independent expert on banking and finance.