Skip to main content
A dividend is a portion of a company’s profit that it chooses to pay out to its shareholders, usually as cash. If you own shares in a company on the date it decides who gets paid, you receive a dividend for each share you hold.

​
Who decides?

The company’s board of directors. They look at how much profit the company made and how much it wants to keep for growth, then they declare a dividend. Shareholders typically approve it at the Annual General Meeting (AGM).
Not every company pays a dividend. Younger or fast-growing companies often reinvest all their profit instead. A company that makes a loss may pay nothing. A dividend is a possibility, not a promise.

​
How often are dividends paid?

It varies by company:

Once a year

A single “final” dividend, usually declared alongside a company’s full-year results.

Twice a year

Some companies also pay an “interim” dividend partway through the year.

Not at all

Companies reinvesting profit, or that didn’t make enough, may pay nothing.
You can’t choose the frequency — it’s set by each company.

​
Where does the dividend go?

It’s paid into your account, based on the shares you hold on the relevant date. Chuuma notifies you when a dividend is due on shares you own.
Reinvesting your dividends — using them to buy more shares — puts them back to work and compounds your growth over time.
Education only — not financial advice. Investments carry risk; the value of investments can go down as well as up.