To understand today's complex economic terms, not everyone's strength.However, there are concepts that warms the soul even to the financial unshod townsfolk.For example, a dividend.What is the term for what its definition, purpose and essence - all this will be discussed in this article.
Where are dividends?
In economic terms, the dividend - is part of the company's profits paid to shareholders after payment of all taxes and mandatory payments.And then a new question arises: "Who is a shareholder?"An individual or organization who invest their own money in the company's shares in order to acquire certain income from the growth of their market value, ie. E. Only shareholder can count on the return on investment in the development of the enterprise funds.
Purchase of shares - the basis for revenue
Now let's deal with the shares.They are common and preferred.As a rule, in the event of the company's fixed amount authorized (or equity) capital, which is a source of funding for all the costs of the organization.On the amount of capital the company issued ordinary shares of a certain nominal value.Their total value should be equal to the sum of the authorized capital.So, to receive dividends, you must be the owner of the shares, more simply, to buy them.
right direction in addressing the company's profits
But not so simple in the concept of "dividend".What is certain proportion of shareholder net income is allocated between its shareholders with shares already clear.However, this type of income to pay or not pay - the organization decides, or rather, the general meeting of shareholders, as the payment of dividends - not an obligation, but a right of society.Legislated in the company for the year may declare dividends on own shares, but is not obligated to do so.Today, only a quarter of all Russian JSC declares and pays dividends.
optimal balance in the distribution of profits
Any company develops and functions in order to maximize profits.Therefore it seeks to invest in further development received the lion's share of income for the year.However, for a long time it is impossible not to pay dividends to its investors: the fall of the share price falls consistently the investment attractiveness of the company.This will lead to lower overall margins.Therefore, companies are looking for the most optimal proportions in the distribution of profits for further reinvestment and dividends.
In world practice, the activities of public companies got the ratio of 8-15% of profits available for dividends, while the rest remain at the disposal of the organization and spent in accordance with the further development: the expansion of production, new construction or technical re-equipment of existing facilities.I must say, Russian companies do not often indulge their shareholders such payments, and the percentage of small dividend.
Who decides on the payment of dividends?
To avoid possible disputes between the shareholders legally established rules for determining the size and the declaration of a dividend, which should be observed carefully:
• Shareholders' Meeting shall pass a resolution on payment of dividends;
• Board of Directors, acting in the interests of all shareholders, determines the size of the dividend this year and recommends it to the General Meeting;
• shareholders are not entitled to establish a different, more attractive from their point of view, the size of payments (they either approve proposals of the Board of Directors or waive the dividend is declared).
Dividends in Russia is set in rubles per share, net of withholding tax.
Highlights dividend announcement
declared dividend - what is it?Having defined the size of the shareholders' meeting decides, in other words, declares dividends, informing participants of their size, form and terms of payment.
form of payment is usually set in monetary units.However, some companies are practicing other options, such as property.In this case, this fact must be provided by the company charter.
legislated time period during which the company is required to make a transfer of dividends to its shareholders.Under current law, the term of payment of dividends may be determined by the charter company or the shareholders' meeting.If for some reason this does not happen, then, in accordance with the law, within 60 days from the date the dividend is declared, shareholders should receive their income.
Share Calendar: Day X
So get dividends may only shareholders who have acquired (to document the transfer of ownership to the depository or registry) shares before a certain date of compiling the list of persons entitled to receive income.This day is determined by the Board of Directors makes a decision when to convene a shareholders' meeting.Information on this date the company provides to shareholders in a 5-day period from the date of its establishment.It certainly is published on the official website.
On the same day the company's roster of persons entitled to participate in the meeting.This is another document.Shares are used to handle, t. E. Pass from one owner to another, and at the appointed day, according to the compilation of the list, one of the shareholders will be entitled to take part in the meeting of shareholders, and others - to receive dividends.Upon the sale of securities after the announcement of the date of registration of a register of persons who have the right to receive dividends from the seller, to realize these securities, but is included in the list (since its shares were owned at the time of writing) is retained that right.The acquisition of shares after the preparation of the said list does not give the new owner the possibility to receive a dividend for the past financial year.Conversely, when the acquisition of shares up to the date of registration of the list, its owner gets the list of persons entitled to receive income from dividends for the entire period, even if the purchase was arranged several days before the registration list.Accordingly, the seller of shares until the day of drawing up the list can not receive dividends, even if the shareholder has been all year and sold them for an hour before registration of the registry.In this case, no matter the duration of the ownership of securities, it is only important who owns them at the appointed day.
procedure familiarization shareholders with a list
law provides the procedure for familiarization with the list of names of shareholders who are entitled to receive dividends:
• the shareholder must present a request to the company to get acquainted with this document, as well as the right to demand a copy of it;
• Organization (within 5 days from the date of application) on a free basis gives the shareholder the opportunity to get acquainted with the list of companies in the territory, as well as at the request of the shareholder may transfer a copy of the document, the cost of copying which shall not exceed the cost of its manufacture.
pay dividends: the causes and consequences
dividend payments to shareholders may be made by postal order or by transfer to a bank account.Get them may personally or through another person by power of attorney issued by a notary.
Failure by commitments to its shareholders in terms of dividends are not paid enough to be punished severely.A shareholder has the right to appeal to court with a claim for the recovery from the organization due to him the sum of income and interest for the period of delay resulting.The interest in this case are awarded for a period of late payment, from the date following the last day of a specified period of payment.
If the non-payment of dividends is guilty himself a shareholder (for example, did not disclose details of the bank account to which the company must make a transfer), the voice of the proceedings can not be.
How to get information about dividends?
Today, all public companies are required to provide financial and operational information on main activities.Therefore, on the official websites of organizations you can always find full details on declared dividends on shares, their size, shape and timing of the payments.
dividend yield of Russian companies
main indicator of the effectiveness of the concept under consideration is the dividend yield, which is calculated as a percentage, as the ratio of earnings per share to its market value.It should be noted that Russian companies practice of paying small dividends on the shares, although recently appeared issuers who care about all groups of its shareholders - minority (small) and majority (large).
dividend yield of Russian companies on average about 5-8%.Leading positions on this indicator for 2013 is occupied dividends "Bashneft": on the ordinary shares it was 17.82% for preferred shares - 12.93%.Earnings Securities in 2013, exceeding 10%, are the following domestic companies: OAO MGTS, JSC "Akron", JSC "E.ON Russia".Dividends "Bashneft", have reached world-class yields, are able to increase the investment attractiveness of the company and to significantly increase its shareholder value.What other things have Obst SA?
Dividends "Gazprom" in 2013 is significantly lower - their yield was 5.2%.Nevertheless, the company each year pays the amount owed to its shareholders.The market value of securities is growing steadily, the financial condition of JSC more than stable.According to the forecasts of equity analysts, dividends of "Gazprom" in the current year will grow, reaching a level of 2011.
Dividends and taxation
As with any type of income, dividends received by a shareholder in the company, subject to taxation.The tax rate, in accordance with the Tax Code, is determined for each category of taxpayers separately.
for citizens and legal persons residing in the country and are tax residents of the Russian Federation, the tax rate on dividend income set at 9%.Citizens who do not have the status of the above, the tax on such income shall be calculated at the rate of 30%.For legal persons not having the status of a tax resident of the Russian Federation, the tax rate - 15%.
As a rule, the Russian public companies legally recognized as a tax agent and pay dividends to shareholders and the founder, has retaining relying amount, and transferring it in the budget, so no action shareholder action is required.
Accounting for dividends
the plan of accounts provided a clear accounting system of such a source, as a dividend.Account 75 "Calculations with founders» accumulates all information about the calculation and payment of such income.From the account of retained earnings, cash, payroll, personal income tax and the other corresponds balance account.That's it, and take into account dividends.Postings reflect accrued, and payment of the dynamics of this type of income as follows:
• Dt 84 Kt 75/2 - the total amount of profit allocated for payment of dividends.
• Dt 75/2 KT 70 - reflect accrued income to shareholders, the company's employees.
• Dt 75/2 KT 68 - personal income tax withheld from dividends of shareholders who are not employed by the company.
• Dt 75/2 KT 50, 51 - payment of cash profits from the cash register or transfer of the current (settlement) account.
• Dt 75/2 KT 91 - reflect the nominal value of the promissory note, bill of exchange if payment is made by the Company.
• Dt 91 Kt 58/2 - the actual costs for the purchase of promissory notes indicated on the account 58/2.
• Dt 91 (99) K-99 m (91) - financial result (profit or loss) on disposal of promissory notes.
• Dt 75/2 KT 90 (91) - reflected the selling price of goods or other property for the amount owed to income unless the charter provides proprietary calculations dividend.
So we are somewhat clarified the essence of the economic concept of "dividend" (that is, what are the benefits to receive it), and hope that this article will help you understand the "wilds" of Russian business.
