There are three different types of dividends: Cash, Stock, and Property Dividend.

  • Cash Dividends - portion of company earnings to be shared to its stockholders through cash or check, paid on a per-share basis. Cash dividends are subject to withholding taxes.

Example: Cash Dividend of Php2.00/share; if you have 100 shares of the company then you will receive Php200.00 as cash dividend, subject to withholding tax.

  • Stock Dividends - additional shares of the company to be given to its shareholders based on the number of shares owned. The company may opt to choose this if the amount of cash the company has is falling short or because the company may need the cash to be reinvested elsewhere.

Example: Stock Dividend of 20%; if you have 100 shares of the company then you will receive an additional 20 shares.

  • Property Dividends - An alternative to cash or stock dividends. A property dividend can either include shares of a subsidiary company or physical assets such as inventories that the company holds.

Example: Company "A" is a subsidiary of Company "ABC". Company "ABC" decides to give 1 share of Company "A" to its shareholders for every 10 shares of "ABC" they own.  Thus, if you have 100 shares of "ABC", then you will receive 10 shares of "A".

To check if you are qualified to receive dividends, click here.