Stocks and ETFs with monthly dividends. Max. profitability

Which companies pay stock dividends every month: full review

Investment greetings, friends! In Russia, companies usually pay dividends once a year, less often - once every six months, and very rarely - once a quarter. While in the United States, quarterly payment of dividends is considered rather the norm, and annual dividend payment is considered an exception to the rule. Moreover, there are companies that pay dividends literally monthly. Next is an overview of companies that pay dividends monthly.

Disclaimer

Just in case, let me remind you that everything said below is not an investment recommendation, a call to action or an incentive to buy shares. All decisions to purchase shares are made at your own risk based on your investment strategy.

All data on dividend yield and stock market value are given at the time of writing. Since quotes change every minute, and dividends may change, the data in the article may not coincide with the current data that you will receive during independent calculations. This is for those commentators who are trying to teach me how to calculate the correct dividend yield

Source: https://alfainvestor.ru/kakie-kompanii-platjat-dividendy-ezhemesjachno-polnyj-obzor/

Dividend payment terms. How to pay dividends to founders

What are the deadlines for paying dividends in 2021, the payment procedure, what are the restrictions on paying dividends to founders - the answers to these and other questions are in the article.

Companies have the right to distribute net profit to pay dividends to founders - individuals or legal entities. In this article we will tell you in detail what dividends are, when and how to accrue and pay them in 2021, as well as what are the consequences of violating the deadlines for their payment.

What are dividends

That part of the profit at the end of the calendar year that the founders of the organization receive as a result of their activities is usually called dividends.

In essence, these are income payments in favor of the company’s owners, which are made at the end of the year, when the accountant determines the net profit and the owners decide to distribute it.

In tax accounting, not any income is considered a dividend, but only that which is distributed in proportion to the shares of participants in the authorized capital.

Important!

Since the new year, a rule has been in effect - when a participant leaves their company, he receives appropriate payments (cash, part of the property, fixed assets, products, etc.), which are now considered dividends and the amount of income tax must be calculated and paid from them to the budget. Not the entire amount is subject to taxation, but only that part that exceeds the value of the shares (or share) of the retiring owner.

What determines the timing of dividend payments?

What determines the timing of dividend payments? First of all, it depends on the legal form - it is important whether you are a joint stock company or a limited liability company. Also, for joint-stock companies, when distributing income, the fact which shares you own - ordinary or preferred - will be significant. Pay attention to these factors.

Restrictions on payment of dividends to founders

So, at the end of the year you compiled financial statements and saw that you received a net profit. At the meeting of participants, it was decided to distribute it partially (or fully) for payment to participants in the form of dividends. Is this always possible without violating the law? Let's see what the restrictions are.

1. The authorized capital of the company must be fully paid by the participants - no matter in cash or property (as agreed by the founders). If this is not the case, then the company does not have the right to pay dividends.
2. It is impossible to distribute the profit received for previous periods if you did not receive it at all this year (that is, there is a loss).
3. Participants will not receive their income in the form of dividends if the company faces bankruptcy if part of the profit is paid out (or the entire net profit for the reporting year is distributed) or if the company has already been declared bankrupt. In this case, you will not see dividends until the company emerges from the crisis.
4. The amount of net assets must be greater than the amount of the authorized and reserve capital of the organization, in this case it is possible to pay dividends. There is a ban on their payment if net assets decrease (and are less than the size of the reserve fund and authorized capital of the company) in the event of such payment.

How to calculate dividends that will suit the owners and will not damage the business

How to spend the company's net profit - use it to pay dividends or finance the business - is decided by the owners. The financial director will have to justify to the owners the amount of dividends that is safe for the company.

Determine the compromise amount of dividends

How to calculate dividends in an LLC

Before dividends are paid, they must be accrued. At the end of the quarter, half-year or year, after-tax profits are distributed among the LLC participants. To do this you need:

• decide on the accrual of dividends;

Dividend payment terms

When you are a member of an LLC, you have the right to receive your share of income no later than 60 days from the decision to pay dividends. If the organization’s charter provides for a different period, you have the right to adhere to it.

At the same time, you can distribute net profit at least every quarter, six months or year - as the founders themselves decide, there are no restrictions.

If the LLC participants decide to distribute net profit in a special, special manner, this must be agreed upon between all participants and written down in the minutes of the meeting, otherwise everything will depend on the participants’ shares in the authorized capital.

For Joint Stock Companies, profits are distributed, as a rule, once a year, based on the results of the reporting period. And this is done only according to the financial statements compiled and approved by management.

But you will have to pay out a little faster than for a limited liability company. A period of 10 days is given for this from the moment it was determined who will receive the payments, and from 10 to 20 days from the moment the decision was made to pay income to shareholders.

Shareholders can set other deadlines, but to do this they need to be written down in the charter.

Taxes

Dividends must be taxed. If the owner is an individual, then you need to calculate and withhold 13% personal income tax. And also transfer to the budget the independently calculated amount of tax on the day the income is paid.

The tax rate increases by 2 percentage points if the owner is a non-resident individual, that is, a foreign individual.

If dividends are paid to the owner-legal entity, then income tax must be accrued and paid on such income (the payment deadline is no later than the day the payment is made):

1. If dividends are paid to a parent company that owned more than 50 percent of the authorized capital for a period of more than 1 calendar year, the tax rate will be 0%.
2. In other cases, the rate of 13% will apply.
3. For foreign companies there is an increased tax rate of 15 percentage points.

How to calculate the tax amount

To calculate the amount of tax, take the amount of accrued dividend payments for all participants minus all payments already received (payments received both in the past and in the current period are taken into account here) and multiply by your share in the authorized capital as a percentage. This way you will receive a tax base for income tax on dividends you receive in the current year. See also what are the income tax rates in 2021.

For late payment, the company faces a fine of twenty percent of the non-payment amount, as well as a penalty at a rate of one three hundredth for each day of delay from the key rate. The amount of fines and penalties usually amount to a significant amount, so income taxes should be withheld and remitted in a timely manner.

Important! Dividends can be paid not only in monetary terms, but also in company property or manufactured products.

However, this must be agreed upon at a meeting of all participants and recorded in the minutes of the meeting with a clear listing of what and in what quantity is to be transferred to each owner.

The timing of the transfer of property is the same as if dividends were paid in cash.

But how can you withhold and pay the amount of income tax if the payment is not in cash, but in kind? Or rather, why should we hold back? In this case, the responsibility for calculating and paying tax lies with the recipient of the property. In this case, the tax amount must be transferred before July 15. And the declaration to the tax authorities is also submitted independently, for individuals - before April 30 in form 3-NDFL, and organizations - in form 2-NDFL before March 1.

If you accrued the founder’s income according to the minutes of the meeting, but did not pay him dividends, you will still pay tax.

However, remember that in this case there is a possibility that you will have to pay the founder a certain percentage for using someone else’s money.

It is also calculated at the key rate, which is in effect at the time the decision on payment is made and during the corresponding period of delay.

What happens if you violate the deadline or procedure for paying dividends?

For companies that violate the procedure for paying dividends or delay payments, there is an article of the Code of Administrative Offenses with a whole system of fines both for the company (from 500,000 to 700,000 rubles) and for officials (from 20,000 to 30,000 rubles). If the chief accountant does not make the payment (for example, he forgot or for another reason), he faces a fine of 2,000 to 3,000 rubles.

What should a shareholder or LLC participant do if they have not received their dividends on time? He can apply for them within three years from the date of the decision to distribute the company’s profits and pay income to the owners. You can set a different period yourself (up to 5 years), and indicate this as a separate clause in the organization’s charter.

Source: https://www.fd.ru/articles/159284-sroki-vyplaty-dividendov

Paying dividends: “guide”

Legal aspect

The main condition for paying dividends is the availability of profit.

After all, dividends are part of the profit that is subject to distribution between participants (
Article 116 of the Civil Code of Ukraine, paragraph “b” of Article 10 of the Law on Economic Companies*, Article 30 of the Law on Joint-Stock Companies**, paragraph 14.1.49 of the Tax Code of Ukraine , paragraph 4 P(S)BU 15
). And keep in mind: not tax profit, but accounting profit.

* Law of Ukraine “On Business Companies” dated September 19, 1991 No. 1576-XII.

** Law of Ukraine “On Joint Stock Companies” dated September 17, 2008 No. 514-VI.

Dividends can be paid both from the profits of the current period and from the retained profits of previous ones. Taking this into account, to determine the amount of such profit, it is logical to focus on the amount of retained earnings according to the balance sheet (page 1420).

This may affect the dividend advance implications.

The minutes of the decision of the general meeting on the basis of which dividends will be paid should record the period for which they are paid.

It is appropriate to touch upon the topic of losses here. Let’s assume that at the end of 2015 the company made a profit, and 2014 was unprofitable. Can all profits earned in 2015 be used to pay divas? It is important to remember: the decision on how to distribute profits and cover losses is the exclusive competence of the general meeting ( Article 33 of the JSC Law, Article 59

and
p.p.
"d" part 5 art. 41 of the Law on Economic Companies ). The legislation does not contain requirements that the profit received should automatically be used to cover losses of previous reporting periods. The general meeting of participants may decide that losses of the previous period are covered, for example, by reserve capital (if it has been formed). That is, there are no violations in the distribution of all profits received in 2015 for the payment of dividends. But it is the general meeting that must decide whether to pay divas in this case or not.

However, if you have not received a profit this year (and at the same time you do not have retained earnings from previous years), dividends cannot be paid. But the above is true for dividends on corporate rights other than shares and common shares.

At the same time, dividends on preferred shares must be paid. For this purpose, funds from reserve capital or a special fund are used to pay dividends (Part 2, Article 30 of the Law on JSC).

There is a profit - is it necessary to pay dividends?

As we noted above, the distribution of profits is the competence of the general meeting.
It is impossible to force the general meeting to make a decision on the payment of dividends, including through court proceedings ( clause 3.1 of the resolution of the Plenum of the Supreme Court of Ukraine of February 25, 2016 No. 4
).

If one of the participants is not satisfied with such a decision of the general meeting, then, as an option, he can appeal it to the court. However, this can only be done if such a decision was made in violation of the law.

For example, if the decision was made in the absence of a quorum or it was not put on the agenda of the general meeting of participants.

How often can dividends be paid?

Joint-stock companies can pay dividends only
once a year (this follows from Part 2 of Article 30 of the Law on Joint-Stock Companies
). At the same time, if such a company has retained earnings from previous years, then, potentially, the frequency may be different.

For LLCs and companies with additional liability, there are no restrictions on the frequency of payments. They can pay dividends more often than once a year ( letter of the Ministry of Justice dated June 10, 2011 No. 379-0-2-11-8.1

). Restrictions can only be provided for by the charter.

For example, the model charter of an LLC, approved by Resolution of the Cabinet of Ministers of Ukraine dated November 16, 2011 No. 1182, establishes that payment of part of the profit is made once a year based on the results of the calendar year.

Payment procedure.

In its most general form, the following scheme works:

1. The general meeting makes a decision on the payment of dividends. It is documented in a protocol. At the same time, the decision should fix the period during which the company must pay dividends (taking into account the deadlines established by law - for joint-stock companies on this matter, see below).

For joint stock companies, a general meeting must be convened once a year no later than April 30 of the year following the reporting year. In this case, the issue of profit distribution must be put on the agenda of such a meeting ( Article 32

and
33 of the Law on JSC
). For other companies there are no restrictions on the timing of convening a general meeting.

2. Based on this protocol, the highest executive body of the company (manager, director) issues an order on the accrual and payment of dividends .

3. Based on the order, dividends are paid.

Please note that joint stock companies can pay dividends through the depository system (see below), and therefore this procedure may differ for them.

When and in what form can dividends be paid?

For joint-stock companies, such a period cannot exceed
six months from the date of the decision by the general meeting to pay dividends. And for preferred shares - six months after the end of the reporting year ( Part 2, Article 30 of the Law on JSC
).

Joint-stock companies pay dividends through the depository system of Ukraine or directly to shareholders (the specific method of payment is determined by a decision of the general meeting of shareholders). If a joint stock company makes a decision to pay dividends in installments, such payments are made simultaneously to all persons entitled to receive dividends, in proportion to the number of shares they own ( clause 5, section 1 of Procedure No. 391***

).
JSC dividends are paid exclusively in cash ( Part 1, Article 30 of the Law on JSC
).

*** The procedure for the payment of dividends by the joint-stock company, approved by the National Commission on Securities and the Stock Market dated April 12, 2016 No. 391.

As for other economic societies, everything is much more liberal for them. The timing of dividend payments is an internal matter of the participants and the competence of their general meeting. As for the form of dividend payment, there are also no strict requirements - it can be any, including in kind.

But remember that for the payment of divs in foreign currency today there are strict restrictions - for this see the resolution of the NBU Board dated September 14, 2016 No. 369 (valid until December 15, 2016 inclusive).

Accounting issues

VAT.

Payment of divs in
cash is not subject to VAT ( clause 196.1.6 of the Tax Code
). In kind - delivery inclusive of VAT.

Dividend advance payment for system-wide enterprises.

Taxpayers paying dividends to legal entities are required to pay a dividend advance payment.
Such dividend advance payment is transferred to the budget before/or simultaneously with the payment of dividends ( clause 57.11.2 of the Tax Code
). The rate is 18%.

The dividend advance payment is not paid when dividends are paid to individuals. There are also a number of other exemptions, in particular if dividends are paid by joint investment institutions.

But keep in mind: the dividend advance payment is paid not on the entire amount of dividends, but only on the amount of their excess over the object of taxation for profit tax, determined based on the results of the year for which they are paid ( clause 57.1 1.2 Tax Code of Ukraine

).
True, in order to pay a dividend advance payment only on the excess amount, two conditions must be met: 1) the object subject to income tax for the year must be declared; 2) the monetary liability for income tax, calculated for the year based on the results of which dividends are paid, must be repaid .
Otherwise, the divans will have to be paid on the entire amount of dividends.

If dividends are paid for an incomplete calendar year, then to calculate the excess amount, you must use the value of the taxable object, calculated in proportion to the number of months for which dividends are paid ( paragraph 3, clause 57.11.2 of the Tax Code of Ukraine

).

The amount of dividend advances paid is included in the reduction of income tax declared in the tax return for the reporting (tax) year.

Dividend advance payment for single-tax legal entities . The dividend advance payment also applies to single-tax legal entities. True, for them everything is much worse. After all, the dividend advance payment will have to be paid on the entire amount of accrued dividends. And besides, the amount of “advances” cannot be offset against the payment of the single tax.

Based on the results of the period in which dividends are paid and advance payments are made, single taxpayers file an income tax return. In such a declaration you will have to fill out page 20 and Appendix AB.

Payment of dividends to individuals.

Important rules:

1. When paying dividends to individuals, the issuer of corporate rights acts as a tax agent ( clause 170.5.1 of the Tax Code of Ukraine

).

2. The dividend advance payment when paying dividends to individuals is not paid (see above).

3. Unified social contribution when paying dividends is not accrued to them. They are named in the List of types of payments for which the unified social contribution is not accrued, approved by Resolution of the Cabinet of Ministers of December 22, 2010 No. 1170

. This applies to all dividends.

A military tax (1.5%) is charged on the amount of accrued dividends .

5. Personal income tax must be paid on the day of dividend payment. If dividends are accrued but not paid, personal income tax is paid within 30 calendar days following the last day of the month of accrual.

Dividends that are reinvested in the authorized capital of the issuer are not subject to personal income tax if the proportions (shares) of participation of all shareholders in the authorized capital of the issuer do not change ( clause 165.1.18 of the Tax Code of Ukraine

). In other words, when the so-called reinvestment is made. Such dividends are reflected in Form No. 1DF with the income indicator “142”.

Accounting.

To account for dividends payable to participants, subaccount 671 is used in accounting: credit records the accrual of dividends, and debit records their payment. As a rule, dividends are accrued from profits. In this case, their amount is reflected in correspondence under Dt 443 and Kt 671.

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Distribution (payment) of dividends to LLC participants in 2021

Dividends are the income remaining after paying all necessary taxes and payments, which can be distributed among the LLC participants.

How often can an LLC pay dividends?

Dividends can be distributed quarterly, semi-annually or at the end of the year. The frequency of payments is prescribed in the company's charter.

The best option is payment at the end of the year. If dividends are distributed before the end of the financial year, they are called interim dividends. There is a risk of recognizing such dividends as remuneration if at the end of the year the profit turned out to be less. And in this case, insurance premiums will be charged on the amount of payments, which will have to be paid additionally.

When dividends cannot be distributed

Profit cannot be distributed in the following cases:

• the authorized capital of the LLC has not been fully paid;
• the company has signs of bankruptcy or will meet such signs after paying dividends;
• the value of net assets is less than the authorized capital and reserve fund, or will become less as a result of the distribution of profits;
• the actual value of the participant’s share (part of the share) has not been paid;
• The company has an uncovered loss according to its financial statements.

Net assets and reserve fund

Net assets are the difference between assets and liabilities, which is determined according to accounting data. Assets include all of the company's property (fixed assets, inventories, cash, accounts receivable, etc.). Liabilities include the LLC's debts (accounts payable).

The reserve fund is a kind of “insurance” for the company in case of compensation for losses from business activities. It is created at the request of the LLC participants, in the amount provided for by the company’s charter, but not less than 5% of the value of the authorized capital.

If, at the end of the financial year, the value of net assets has become less than the authorized capital and reserve fund (if any), within six months after the end of the year it is necessary to take measures to increase net assets (at least to the size of the authorized capital) or reduce the authorized capital or even liquidate OOO.

How to distribute dividends in 2021

The procedure for paying dividends can be divided into 3 stages:

We check net assets and determine the total amount of dividends

This stage is preliminary and its main goal is to understand whether it is possible to distribute profits in the company at the moment.

As mentioned above, the size of net assets must be greater than the authorized capital and reserve fund. The calculation of the value of net assets is carried out in accordance with Order of the Ministry of Finance No. 84n dated August 28, 2014.

To determine the total amount of dividends, we subtract the amount of authorized capital from net assets. The amount received can be used in whole or in part for payments to LLC participants.

We decide on the payment of dividends

The company's profit is distributed based on the minutes of the general meeting of participants or the decision of the sole founder of the LLC.

note

, payment of dividends is a right, not an obligation of the company, and if the corresponding decision has not been made, the participant will not be able to receive a profit (part of the profit) even through the court. Moreover, if the decision is made, it cannot be canceled; in this case, if the payment of dividends ultimately does not take place, the amount due can be recovered by the court.

At the general meeting of participants, the financial statements are approved and the amount of dividends for each founder is determined. Profit is distributed in proportion to the shares in the authorized capital of the LLC, or in the amounts specified in the company's charter.

Starting from September 2014, the minutes of the meeting of participants must be certified by a notary.

This requirement can be circumvented in the following way: to add to the agenda an item stating that decisions made are certified by the signatures of all present participants, or to add in advance to the charter an item with approximately the following content: “The adoption of a decision by the general meeting of the Company’s participants and the composition of the company’s participants who were present at its adoption, confirmed by the signing of the minutes by the chairman and secretary of the general meeting, who are participants in the company"

.

We pay dividends

Payment of dividends must occur within 60 days after the decision is made. A shorter period can be specified in the charter of the LLC or in the minutes of the meeting (decision of the sole founder).

Profit can be transferred to the participant to a bank account or in other ways specified in the protocol (decision). Payment of dividends (part thereof) with property is allowed.

If a participant misses the payment deadline, for three years he retains the right to apply to the LLC to receive the due profit. This period may be increased by the charter to five years.

note

, that the missed deadline is not restored (exception - absence due to the use of violence and threats against the participant, for more details, Article 28 of the Federal Law No. 14 of 02/08/1988). The unreceived part of the profit is restored as part of the company's retained earnings.

Tax on dividends in 2021 (NDFL)

Insurance premiums are not charged on the amount of dividends paid to individuals, but are subject to personal income tax withholding.

For individuals – residents of the Russian Federation, the personal income tax rate is 13%.

For non-resident individuals, a rate of 15% applies.

The tax rate for personal income tax is determined based on the status of the participant (resident/non-resident) on the date of payment of dividends. Tax is withheld from each payment, no later than the day following the day of transfer of dividends (Articles 226, 275 of the Tax Code of the Russian Federation).

Note

: Personal income tax is not withheld from profits paid by property. But the company must report this to the Federal Tax Service within a month from the date of payment (clause 5 of Article 226 of the Tax Code of the Russian Federation).

If the LLC participant is a legal entity, dividends are subject to income tax. In some cases, a preferential zero rate is applied if the share of participation in the company is at least 50% for 365 days.

The income tax rate for a participant - a Russian company is 13%, for a participant - a foreign company, a rate of 15% is applied.

Source: https://www.malyi-biznes.ru/dividendy/

Dividends in advance

If your company operates with stable profits, you don’t have to wait until the end of the year and pay dividends quarterly. This becomes especially relevant in light of new amendments to the Tax Code.

From January 2005, the personal income tax on dividends will increase to 9 percent (Law No. 95-FZ of July 29, 2004). But you still have the opportunity to save owners money. To do this, you need to pay interim dividends based on the results of 9 months of 2004 and charge 6 percent of personal income tax. Then only fourth quarter dividends will fall under the newly introduced additional 3 percent.

You have the right

Firms are allowed to pay interim dividends. For joint stock companies, this opportunity is enshrined in paragraph 2 of Article 42 of the Federal Law of December 26, 1995 No. 208-FZ. And for limited liability companies - in paragraph 1 of Article 28 of the Federal Law of February 8, 1998 No. 14-FZ.