We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


Gross Dividends

Categories: Stocks, Investing

A gross dividend equals the dividends paid out, without subtracting taxes, fees, or other costs. Once that stuff is taken into account, you're left with the net dividend.

A dividend represents a way for companies to split profits with their shareholders. Company management will declare a dividend of a certain amount. The shareholders will then receive a check based on the number of shares they hold.

You own 2,000 shares of Drive Saucy, an Uber-like service dedicated to quick delivery of hot sauce. The company declares a dividend of $0.50 a share. That means you receive a check for $1,000...$0.50 for each of the 2,000 shares you own.

That $1,000 represents your gross dividend. Once you pay taxes and any other expenses, then it becomes your net divided...the amount you actually get to spend on fast-delivery hot sauce.

Find other enlightening terms in Shmoop Finance Genius Bar(f)