2023 Practical Dividend Payment Guide: What You Need to Know as an Investor

▶ Why Dividends Matter in Your Investment Strategy

Before diving into the 2023 dividend calendar, it’s crucial to understand what these payments represent for your portfolio. Shareholders receive dividends as compensation for their invested capital in a company. When a company generates profits, it decides to share a portion with its owners based on the number of shares they hold.

This reward acts as a powerful incentive for investors. Companies like Apple, Microsoft, Intel, JP Morgan, and Coca-Cola are recognized precisely because they maintain consistent profit-sharing policies. There is even a special category called “Dividend Aristocrats” that groups companies committed to increasing their payments for 25 consecutive years.

▶ Ways to Receive Dividends: Understanding Your Options

Companies have two main methods to remunerate their shareholders:

Fixed Dividend: The shareholders’ meeting determines a specific monetary amount paid uniformly. This model is preferred by large corporations like Santander, Mastercard, and Walmart.

Flexible Dividend: Investors can choose to receive the payment in cash, additional shares, or a combination of both. This alternative is more common in financial institutions, though not exclusive to them.

When the payment is made in shares, purchase rights are first issued that trade on the market for a certain period, allowing shareholders to decide whether to exercise them or not.

▶ Classification Based on the Source of Funds

There are three types depending on how they are financed:

• Ordinary Dividend: Paid as the business progresses according to established projections.
• Complementary Dividend: Paid once results have exceeded initial expectations.
• Extraordinary Dividend: Arises from exceptional income such as property sales or business stakes.

▶ The Four Critical Dates You Should Mark on Your Calendar

To avoid losing payment rights, it’s essential to know these dates in the 2023 dividend calendar:

1. Declaration Date: When the shareholders’ meeting approves the distribution, specifying amounts and schedule.

2. Record Date: Determines who is entitled to the payment. You must be the owner of the shares by the close of this day.

3. Ex-Dividend Date: The final cutoff point. Those who held shares until this day will receive the payment, even if they sell before the payout. Buyers after this date are excluded.

4. Payment Date: When the money is actually paid to eligible shareholders.

▶ Major Companies and Their Upcoming Payments (2023)

The 2023 dividend calendar includes payments from global giants:

Technology companies like Apple, Microsoft, Intel, and NVIDIA maintain active schedules. In the financial sector, JP Morgan, Mastercard, PayPal, and Visa regularly distribute earnings to shareholders. The entertainment and consumer sectors are represented by Coca-Cola, Walmart, and Nike Inc., while the Spanish bank Santander also appears on this calendar.

Some corporations like Meta Platforms, Netflix, Amazon, and Alphabet adopt more conservative payout positions during this period.

▶ Factors That Can Affect Your Expected Dividends

Several scenarios can modify or suspend the payments listed in the 2023 dividend calendar:

Deterioration of results: If during the fiscal year revenues fall below projections, the amount to be distributed may decrease. Some companies prefer to maintain payments using reserves rather than suspending entirely, though this is only a temporary solution.

Unexpected risks: Major lawsuits or financial stress situations can lead to temporary dividend suspension until the company regains stability.

Regulatory interventions: During systemic crises (such as COVID-19), authorities may prohibit distributions in companies rescued by the State.

Extraordinary income: Asset sales or unexpected gains generate complementary or extraordinary dividends.

Change of control: A Tender Offer (OPA) can cancel planned dividends under arguments of financial solidity.

▶ Practical Calculation: From Theory to Real Numbers

Calculating your yield is easier than it seems. You need the Dividend per Share (DPA):

DPA = Net profit allocated to dividends ÷ Number of shares outstanding

Then, obtain the Dividend Yield (RD):

RD = DPA ÷ Current share price × 100

Practical example: A bank earns 10 million in profits, allocating 80% (8 million) to dividends. With 340 million shares outstanding, the DPA would be €0.0235. If the share trades at €1.50, the yield would be 1.56%.

▶ Taxation of Dividends: What the Tax Authorities Take

In Spain, cash dividends are subject to a progressive scale:

• Up to €6,000: 19%
• Between €6,000 and €50,000: 21%
• Between €50,000 and €200,000: 23%
• Over €200,000: 26%

If you receive dividends in shares, taxation is deferred until you sell, calculating on the gain between the original purchase price and the sale price.

Withholding is automatically applied in investment funds, but manual if you invest directly in shares. Check your country’s specific regulations, as each jurisdiction has its own tax rules.

Important information: This analysis of the 2023 dividend calendar provides indicative data. Always verify with official sources such as Bloomberg, Reuters, or the issuer’s website before making investment decisions.