Gross Dividends

Categories: Stocks, Investing

A gross dividend equals the dividends paid out, without subtracting taxes, fees, or other costs. Once that stuff is taken into account, you're left with the net dividend.

A dividend represents a way for companies to split profits with their shareholders. Company management will declare a dividend of a certain amount. The shareholders will then receive a check based on the number of shares they hold.

You own 2,000 shares of Drive Saucy, an Uber-like service dedicated to quick delivery of hot sauce. The company declares a dividend of $0.50 a share. That means you receive a check for $1,000...$0.50 for each of the 2,000 shares you own.

That $1,000 represents your gross dividend. Once you pay taxes and any other expenses, then it becomes your net divided...the amount you actually get to spend on fast-delivery hot sauce.

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