- Dividends that are distributions of a company's profits. They are fully taxable.
quarterly dividends, annual dividends, periodic dividends
Capital Gain Distribution, Capital Gain, Capital Gains
Related Terms and Acronyms
- Business (busn) — Abbreviation,
- Economic activities of a given type.
- A company, either for-profit or non-profit.
- Commercial, industrial or professional activities undertaken by an entity.
- Capital Gain (CG) — Acronym, Important,
- The profit made by the seller when real estate or other capital assets are sold. Capital gains are taxed more favourably than earned income. However, this can be dependent on your tax bracket and the length of time you owned the asset before it was sold. You could pay approximately one-third to one-half less tax than you would pay on the same amount of earned salary.
- Capital Gain Distribution — Definition,
- When the fund sells some of its assets, you receive capital gain distributions or a portion from the sale. This distribution is regarded as a capital gain, not as ordinary dividends such as the interest gained from a bank account. It is important to separate capital gain distributions from ordinary dividends because capital gains are taxed more favourably.
- Capital Gains Tax (CGT) — Acronym, Canada,
- A tax on profits from the sale of real estate or investments.
- Dividend — Definition,
- Distribution of earnings to shareholders. In credit unions, it's the money paid to members for deposits, similar to the interest banks pay to their customers for deposits.
- Investment Income — Definition,
- Income that is earned from investments such as interest, dividends, and capital gains.
- Ordinary Income — Definition,
- Income that does not qualify as a capital gain including wages, interest, dividends, and net income from a business.
- Profit — Definition,
- When revenues exceed expenses.
- Taxable Income — Definition,
- Income that is subject to taxation after accounting for adjustments, exemptions, and deductions.