What is a dividend?
A dividend is the part of a company's profit that is paid out directly to shareholders — typically once or a few times a year, as an amount per share. Own 100 shares and the company pays 5 per share, and 500 lands in your account.
The money goes from the company straight to your account.
What many overlook: the price drops
On the day the dividend leaves the company, the share price normally drops by exactly the dividend amount. The money has gone from the company to you. You are not richer because of the dividend — you have had part of your investment paid out in cash.
So a dividend is neither good nor bad in itself. It is a choice the company makes: pay out the profit, or keep it and invest in growth.
Who pays dividends and who does not
Mature companies with stable profits — banks, utilities, pharma — often pay dividends because they cannot use all the money for growth. Growth companies often pay nothing; they invest every euro in getting bigger. Neither is a mark of quality.
Tax on dividends (Denmark)
In Denmark, dividends are taxed as share income: 27% up to the threshold (DKK 79,400 in 2026, double for married couples) and 42% above it. Dividends from Danish companies usually have 27% withheld at source. On an aktiesparekonto the rate is 17%.
The typical beginner's mistake
Buying a stock just before the dividend date to "get the dividend". The price drops by the dividend the day after — you end up with the same amount, but owe tax on the dividend.
How you see it in Kiggo
Under "Show key figures", Kiggo writes whether the company pays a dividend and what percent of the price it amounts to — with a warning if the percentage is so high it is probably a rear-view figure from before a price fall. If the company pays nothing, Kiggo explains that this can be perfectly fine.
Related terms
Frequently asked questions
When do you get a dividend?
Danish companies typically pay once a year, shortly after the AGM in spring. Many US companies pay every quarter. You must own the share on a specific day — the "ex-dividend date" — to receive it.
Is a high-dividend stock a good stock?
Not necessarily. A very high dividend in percent is often because the price has fallen sharply — the party is already over. See the entry on dividend yield.
Do I have to report dividends myself in Denmark?
Danish dividends are reported automatically. Foreign dividends usually appear on your tax statement too, but check them — and note that foreign withholding tax may have been deducted, which you can sometimes reclaim.
Kiggo explains — Kiggo does not advise. We never tell you what to buy or sell, and key figures can only be compared between companies in the same industry. The decision is yours. Last updated 2026-09-07.
Written by Claus Frisch, founder of Kiggo. Not an adviser, not a bank — Kiggo explains, you decide.
