2023 Dividend Investment Guide: Have you marked the dividend dates of these giant companies?

▶ 2023 Major Listed Company Dividend Dates Overview

Honestly, if you want to profit from dividends, the key is to understand a few critical timing points. Based on the latest information as of July 2023, a large number of top global companies have announced their dividend plans for this year.

Tech giants like Apple, Microsoft, Meta, along with financial powerhouses such as JPMorgan Chase and American Express, as well as entertainment companies like Disney and Netflix, are all on the list. However, it’s worth noting that companies like Amazon and Tesla currently have no dividend plans, so investors relying on these two for dividends may need to wait a bit longer.

Below is a Quick Dividend Date Lookup for some key companies:

To avoid missing out, you must remember these dates well.

▶ Understanding the Core Concept of Dividends

What exactly are dividends?

Simply put, dividends are the portion of a company’s profit paid out to shareholders after you invest in the stock. In other words, it’s the company’s “return” to shareholders.

This is why some investors focus not only on stock price movements but also on a company’s dividend-paying ability. After all, even if the stock price remains flat, you can still receive steady cash flow through dividends. There is even a specific term in the market called “Dividend Aristocrats,” referring to companies that have not only maintained dividends for over 25 years but also increased their dividend amounts each year. These companies are considered a “safe haven” for investors.

How are dividends paid?

Companies mainly distribute dividends in two ways: cash dividends and stock dividends. However, most investors prefer cash dividends because they can immediately access real money.

Based on the nature of dividends, they can be divided into two main categories:

Fixed Dividends: The company’s shareholders’ meeting pre-determines a specific dividend amount, which is paid directly to all eligible shareholders.

Flexible Dividends: Investors have the choice to receive cash dividends, new shares, or a combination of both. This mode is common among banks and financial institutions.

If a company chooses to pay dividends via stock issuance, it usually grants shareholders stock purchase warrants, which can also be traded in the market.

In terms of timing, dividends can be classified into three types:

🔹 Regular Dividends: Distributed according to normal business expectations

🔹 Supplementary Dividends: Additional dividends paid when business performance exceeds expectations

🔹 Special Dividends: Extra dividends resulting from one-time income (e.g., asset sales)

▶ Four Key Dates You Must Remember

The success of dividend investing largely depends on your understanding of these four timing points. Getting them wrong could exclude you from receiving dividends.

① Announcement Date

The day the shareholders’ meeting announces the dividend resolution. At this point, the dividend amount, ex-dividend date, and payment date are all announced simultaneously.

② Record Date (Cut-off Date)

The list of account holders on this day determines who is eligible for dividends. You must hold the stock before this date to qualify.

③ Ex-Dividend Date

A critical dividing line. Investors who buy and hold the stock before the ex-dividend date will receive the dividend even if they sell before the payment date. Conversely, if you buy after the ex-dividend date, even if you hold until the payment date, you won’t receive this dividend.

④ Payment Date

The day the money is actually credited to your account.

Understanding these dates is crucial for investing. Many people miss out or get “tricked” because they don’t understand the meaning of the ex-dividend date.

▶ Five Factors That Might Affect Your Dividends

Dividends are not fixed; the following situations can lead to adjustments or cancellations:

First Risk: Performance Below Expectations

Dividends are based on projected income. If mid-year results fall short, the company might reduce dividends. In extreme cases, dividends could be canceled altogether. However, cutting dividends can severely impact stock prices, so some companies may draw from retained earnings to maintain dividends temporarily. Long-term, profits need to be genuine.

Second Risk: Sudden Events

Though rare, companies may face unexpected crises—such as major lawsuits. If facing significant financial trouble, a company might suspend dividends to weather the storm.

Third Risk: Government Policy Intervention

During COVID-19, the EU prohibited companies receiving government aid from paying dividends. While uncommon, such measures can occur during major crises.

Fourth Risk: Unexpected Income

Generally not considered a risk. When a company receives unexpected large income (e.g., asset sales), it may issue special dividends, which is good news for investors.

Fifth Risk: Mergers and Acquisitions

When a company is acquired, the acquirer usually specifies whether dividends will be maintained or canceled in the offer. Some acquirers may cite “financial stability” to justify stopping dividends.

▶ How Are Dividends Taxed?

Dividend income is taxable. Taking Spain as an example, tax rates are progressive based on income levels:

💰 Cash Dividend Tax Rates (most common)

• Up to €6,000: 19%
• €6,000–€50,000: 21%
• €50,000–€200,000: 23%
• Over €200,000: 26%

💰 Tax Treatment of Stock Dividends

If you receive new shares instead of cash, tax calculation is deferred until you sell these shares. You need to divide the original purchase price by the total number of shares (original + new) to determine the cost basis.

Fund dividends are usually automatically taxed, while stocks purchased directly or CFDs require manual declaration.

▶ How to Calculate Dividend Yield

To evaluate a stock’s dividend value, focus on two key indicators:

Earnings Per Share (EPS) calculation

EPS = Total Dividends ÷ Total Outstanding Shares

Dividend Yield calculation

Dividend Yield = Annual Dividend Per Share ÷ Current Stock Price × 100%

Practical Example

Using “Money Bank” (example) to illustrate:

This bank’s net profit this year reached €10 million, with 80% allocated to dividends, totaling €8 million. The company has 340 million shares outstanding.

Calculate EPS:

• EPS = €8 million ÷ 340 million = €0.0235 per share

Assuming the current stock price is €1.50, the dividend yield is:

• Dividend Yield = €0.0235 ÷ €1.50 × 100% = 1.57%

This yield level is considered moderate to slightly above average in the current market.

▶ Practical Tips for 2023 Dividend Calendar

To effectively utilize the 2023 dividend calendar, you should:

✅ Mark important dates in advance — especially the ex-dividend date, which determines whether you can receive dividends

✅ Monitor company performance — don’t just look at historical data; observe current operational results

✅ Diversify your portfolio — avoid putting all your funds into high-dividend companies; consider long-term growth prospects as well

✅ Plan taxes ahead — strategize based on your income level to avoid surprises

✅ Beware of dividend traps — companies with extremely high dividend yields may indicate underlying performance issues