What is a dividend?

A dividend is a portion of a company's profit paid out to shareholders, usually per share (e.g. TZS 50 per share). Not every company pays dividends — some reinvest all profit into growing the business instead.

Key dates to know

• Declaration date — the company announces the dividend.
• Ex-dividend date — you must own the share before this date to qualify for the payment.
• Payment date — when the dividend actually reaches shareholders.

Dividend yield

Dividend yield expresses the annual dividend as a percentage of the current share price: (annual dividend per share ÷ share price) × 100. A higher yield means more income relative to the price you paid — but an unusually high yield can also signal the market expects trouble, since yield rises when price falls.

Dividends aren't guaranteed

A company can cut or skip a dividend if profits fall or it needs to preserve cash. Don't assume last year's dividend will repeat — check the company's recent financial results and any dividend announcements.

Using this app

This app's calculators include a Dividend Income Calculator to help you estimate income from a holding, and the Portfolio tracker lets you record your average cost so you can see total return, not just price change.