Gross Dividends

Gross dividends are the total cash payments made by a company to its shareholders before any taxes or deductions are applied. They represent the company’s distribution of profits to investors as a reward for their ownership in the business. Gross dividends are reported in a company’s financial statements and provide an important indicator of a company’s profitability and cash flow health, impacting investor returns and sentiment.

Example

A company declares a gross dividend of $2 per share, rewarding its shareholders with pre-tax payments from its profits, reflecting strong financial performance.