Dividend
Part of a company’s profit paid out to shareholders.
Dividends are part of the total return of shares. In Switzerland they are taxed as income; capital gains on private assets are usually tax-free.
Related terms
- Withholding taxTax deducted at source from dividends and interest, such as the 35 % Swiss withholding tax, partly reclaimable.
- ETFAn exchange-traded fund: an index fund you buy and sell on the stock exchange like a share.
- Nominal returnThe return before inflation, as fund reports and index providers usually quote it.
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Investing
Investing in Switzerland: broad ETFs, domicile and fees
A plain guide to a low-cost portfolio from Switzerland: why broad index funds, how fund domicile affects withholding tax and what fees do over 30 years.