Dividend (Transaction)
A dividend transaction records the cash payment received from holding a dividend-paying asset (stock or distributing ETF). It represents the portfolio-level impact of a dividend event.
🔑 Key Properties
| Property | Detail |
|---|---|
| Code | DIVIDEND |
| Cash effect | ⬆️ Increases balance |
| Asset effect | — (quantity unchanged) |
| Tax event | Yes (taxable income in most jurisdictions) |
📊 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 (the date the company checks who owns shares):
\[
\text{Dividend Received} = \text{Shares Held} \times \text{Dividend per Share}
\]
Where:
- Shares Held = number of shares you own at the record date (ex-dividend date − 1 business day)
- Dividend per Share = amount declared by the company (e.g., $0.25/share)
💰 Withholding Tax
Many jurisdictions apply withholding tax on dividends — especially for foreign stocks. The tax is deducted at source (by the broker or the issuer's country) before you receive the payment:
\[
\text{Net Dividend} = \text{Gross Dividend} \times (1 - \tau_{withholding})
\]
Where:
- Gross Dividend = full declared amount (before tax)
- \(\tau_{withholding}\) = withholding tax rate (e.g., 15% for US stocks held by EU residents under most tax treaties)
- Net Dividend = what actually lands in your broker account
The withheld amount is typically recorded as a separate TAX transaction in LibreFolio, keeping the gross dividend and the tax deduction distinct for tax reporting purposes.
🔗 Related
- 💰 Dividend Events — How dividends affect asset prices
- 💰 Taxation — Dividend tax treatment
- 📈 Stocks — The primary dividend-paying asset class