Why is the dividend amount I receive less than the gross dividend announced by the company? - EuroFinance

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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Why is the dividend amount I receive less than the gross dividend announced by the company?

In most countries, dividends are subject to withholding tax. The size of the tax on dividends depends on various factors, such as the source of income, the country of registration of the company, etc.
For example: Suppose you own 10 shares of Adidas AG, which decides to distribute an annual gross dividend of 0.70 euros per share. Since Adidas AG is a German company, dividends paid by the company are subject to tax under German legislation, the current rate of which is 26.375%. Here's how you can calculate the net dividend you will receive: 10 * € 0.70 * (1 – 0.26375) = € 5.15. You will receive the net dividend (€ 5.15), with the dividend tax being withheld at the source.