Dividend & Interest

Dividends and interest represent yield generated by your portfolio assets. They are cash payments received without selling the underlying asset.

🔑 Key Properties

Property	Dividend	Interest
Code	`DIVIDEND`	`INTEREST`
Cash effect	⬆️ Increases balance	⬆️ Increases balance
Asset effect	— (quantity unchanged)	— (principal unchanged)
Tax event	Yes (taxable income)	Yes (taxable income)

💡 When to Use

Use these transactions when cash arrives in your broker account as yield from an asset:

Dividend: Income from equity (stocks, distributing ETFs).
Interest: Income from fixed-income instruments (bonds, savings accounts, P2P loans, crowdfunding).

Do not use these for return of principal (e.g., bond maturity settlement).

💰 Dividends in Detail

Event vs Transaction

Concept	Dividend Event	Dividend Transaction
Scope	Global — affects the asset price	Personal — affects your portfolio
Example	"Apple declared $0.25/share"	"I received $12.50 from my 50 shares"
Recorded by	Provider or manual (Data Editor)	Broker report (BRIM import)
Chart impact	Diamond marker (◆) on price chart	Not visible on chart

Dividend Amount

The amount received depends on the number of shares held on the record date:

\[ \text{Dividend Received} = \text{Shares Held} \times \text{Dividend per Share} \]

Withholding Tax

Many jurisdictions apply withholding tax on dividends — especially for foreign stocks. The tax is deducted at source:

\[ \text{Net Dividend} = \text{Gross Dividend} \times (1 - \tau_{withholding}) \]

The withheld amount is typically recorded as a separate TAX transaction in LibreFolio, keeping the gross dividend and the tax deduction distinct for reporting purposes.

📈 Interest Sources

Source	Description	Frequency
Bond coupons	Fixed or floating rate payments	Semi-annual / Annual
Savings interest	Interest on cash deposits	Monthly / Quarterly
P2P loan payments	Interest portion of loan repayments	Monthly
Crowdfunding returns	Fixed-rate returns on projects	Varies

Theory & formulas

For the mathematics of interest accrual (simple vs compound, day count conventions, yield metrics), see:

📈 Interest Events — Accrual mechanics and price impact
📅 Day Count Conventions — How interest periods are calculated

💰 Dividend Events — How dividends affect asset prices
📈 Interest Events — Accrual and coupon mechanics
💰 Taxation — Tax treatment of yield
🏛️ Bonds — The primary interest-bearing asset
📈 Stocks — The primary dividend-paying asset class