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Dividend

A dividend is the portion of a company’s profit distributed to shareholders in cash or in shares. A dividend is the part of a joint-stock company’s profit paid out to shareholders by decision of the general assembly.
Contents
  1. 1.Key points
  2. 2.Formula / calculation
  3. 3.Interpretation
  4. 4.Pitfalls
  5. 5.Frequently asked questions

Key points

  • In Türkiye dividends are usually paid once a year, sometimes in instalments, and are announced on KAP with a profit distribution table.
  • Regular and growing dividends signal steady cash generation and shareholder-friendly management.
  • on the payment date the share price drops by the dividend amount, so receiving a dividend is not a gain by itself.

Formula / calculation

Gross dividend per share = Total profit to be distributed / Total number of shares. The amount is announced in TL and as a percentage per 1 TL nominal share; after 15% withholding tax (the rate may change with legislation) the net amount is credited to the investor.

Interpretation

Regular and growing dividends signal steady cash generation and shareholder-friendly management. Dividend yield measures the cash return relative to price, while the payout ratio (dividend / net profit) shows how much of profit is distributed.

Pitfalls

on the payment date the share price drops by the dividend amount, so receiving a dividend is not a gain by itself. You must own the share before the record date to receive it. Companies may also choose to reinvest profit rather than distribute it.

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Frequently asked questions

A dividend is the portion of a company’s profit distributed to shareholders in cash or in shares.

Gross dividend per share = Total profit to be distributed / Total number of shares. The amount is announced in TL and as a percentage per 1 TL nominal share; after 15% withholding tax (the rate may change with legislation) the net amount is credited to the investor.

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