Glossary

  • Target Payout Ratio

    Target Payout Ratio is a company’s long-term goal for the percentage of earnings paid to shareholders in the form of dividends. Basics of…

  • Qualified Dividend Income (QDI)

    Qualified Dividend Income (QDI) is dividend income that is taxed at the lower long-term capital gains tax rate, as opposed to the higher…

  • Sector Dividend Performance

    Sector Dividend Performance is the dividend performance of a specific sector, including average yields, payout ratios, and growth rates, often used for comparative…

  • Withholding Tax Compliance for Dividends

    Adherence to tax laws that require taxes to be withheld from dividend payments, especially for foreign investors. Understanding Withholding Tax on Dividends As…

  • Year-Over-Year Dividend Growth

    I consider Year-Over-Year Dividend Growth to be the “holy grail” or the “secret sauce” of dividend investing. If you learn just one thing…

  • Passive Dividend Income

    Income derived from dividends in a passive investment strategy, where the focus is on long-term income generation rather than active trading. Overview of…

  • Variable Dividend Model

    A dividend policy model where payouts fluctuate based on a company’s earnings, cash flow, or other financial metrics. Overview of Variable Dividend Model…

  • Undistributed Dividend

    A portion of a company’s profit that has been allocated for dividends but not yet distributed to shareholders. Basics of Undistributed Dividend When…

  • Withholding Tax on Dividends

    Tax withheld at the source on dividends paid to non-resident shareholders, as per the tax laws of the country where the dividend-paying company…