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Glossary · PSX term

Gross dividend.

A gross dividend is the full declared dividend before any withholding tax is deducted.

Definition

Companies announce dividends as a gross amount per share or as a percentage of face value. The cash that actually reaches your account is the net dividend after withholding tax.

Worked example

A 50% cash dividend on a Rs. 10 face value share is a gross dividend of Rs. 5 per share, before tax.

Related on PSX Clarity

Term
Net dividend
Term
Interim dividend
Term
Dividend yield
Term
Withholding tax

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