Financial Term Explorer
Cash Dividend
The most common dividend form paid directly in cash. Distinguished from stock dividends.
📝 Definition
**Cash Dividend** is paid directly from retained earnings to shareholders as cash. Unlike stock dividends, actual money is deposited, immediately available for spending or reinvestment.
In Simple Terms
The most common dividend type. If Samsung pays $10 per share and you own 100 shares, $1,000 hits your account.
Example
Apple declares $0.24 cash dividend. With 1,000 shares, you receive $240 deposited directly to your account.
💡 Practical Tips
- 1Reinvest cash dividends for compounding.
- 215.4% tax is withheld on Korean dividends.
⚠️ Common Mistakes
Remember stock price adjusts down by dividend amount on ex-date. Cash received doesn't mean extra 'free' money.
❓ Frequently Asked Questions
Cash vs stock dividend - which is better?▼
Cash dividends are immediately usable; stock dividends defer taxes until you sell.