Dividends

BTP training

Dividends

Dividends are a portion of a company's profits distributed to shareholders. Here's a closer look at what they are, how they work, and the tax implications.

What Are Dividends?

Definition: Dividends are a distribution of profits from a company to its shareholders. They can be paid in cash or in the form of additional shares.
Type:
- Cash Dividends: Direct payments to shareholders, usually on a quarterly or annual basis.
- Stock Dividends: Distribution of additional shares instead of cash, which dilutes the ownership but increases the total number of shares owned.

How Do They Work?

Dividend Declaration:
- The company decides to distribute a dividend, officially declaring it. The ex-dividend date and the payment date are communicated.
Ex-Dividend Date:
- This is the date after which the purchasers of the shares are not entitled to receive the dividend. Only those who owned the shares before this date will receive the payment.
Payment:
- Dividends are paid in cash or shares to shareholders of record on the payment date.

Dividend Taxation

Tax Rate:
- In Italy, dividends are subject to a 26% withholding tax, which is withheld at source.

Declaration:
- Even if the withholding tax is handled by the intermediary, it is important to keep track of the dividends received for any tax returns.

Advantages and Disadvantages of Dividends

Advantages:
- Income Stream: They provide regular income to investors.
- Financial Health Indicators: Companies that pay dividends regularly are often considered financially sound.
Disadvantages:
- Taxation: Dividends are subject to taxation, which reduces the net return to the investor.
- Seeking Growth: Companies may choose to reinvest profits for growth rather than pay dividends, which may not satisfy income-oriented investors.

Conclusion
Dividends can be an important source of of income for investors, especially those seeking regular cash flow.

Information on BTPs

Choose a topic from the list below and learn more about it

Liquidity risk of BTPs

Capital gains

Capital losses

Choosing between BTPs and STOCKS

Credit risk of BTPs

The coupons of BTPs

The price of a BTP

Stock Market Calendar and Trading Hours

The periodicity of BTPs

Types of BTPs

MOT Market

The maturity of a BTP

Is it worth investing in BTPs?

Selling BTPs at maturity

Buying BTPs

Selling BTPs before maturity

Buying a BTP below par

Capital gains

BTPs, BOTs, CTZs and CCTs

Interest rate risk in BTPs

Reinvestment risk of BTPs

BTPs and risks

The profit from a BTP

Inflation risk of BTPs

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How to calculate the yield of a BTP

Enter in the simulator how much to invest in BTPs and the net yield will be calculated immediately by processing the purchase price, maturity of the stock, interest on the coupons, day of purchase, amount of the investment, preferential taxation of 12.5%

How to calculate BTPs

Enter how much to invest in BTPs in the simulator and the net yield will be immediately calculated by processing the purchase price, maturity of the security, interest on the coupons, purchase day, amount of the investment, preferential taxation of 12.5%

Best BTPs on the market

Finding the best BTP to buy depends on your financial goals and what your expectations are. BTPs with higher coupons guarantee better returns but you have to pay attention to their duration, the maturity. The longer the maturity of the BTP, the more you are exposed to price volatility and inflation risk. Use the BTP investment simulator and find out how much you could earn by investing in BTPs.

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Carmine

BTPfacile.it is a website that offers tools and information to help investors choose the BTPs that best suit their needs. The site includes an investment simulator that allows you to calculate the net returns of BTPs in real time, by entering the amount you want to invest. The site is useful for those who are trying to better understand the returns of BTPs and want to make informed choices.

David

I think BTPfacile.it is a great tool for those interested in investing in BTPs. The site offers useful features such as an investment simulator, which allows you to calculate net returns in real time, helping investors make informed decisions. In addition, the platform is intuitive and easy to use, making it accessible even to those who do not have much experience in the investment field.

Dividends

Dividends are payments made by joint-stock companies to their shareholders

BTP training

Dividends

Information on BTPs

Choose a topic from the list below and learn more about it

How to calculate the yield of a BTP

How to calculate BTPs

Best BTPs on the market

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