According to the results of its activities in the operating period, a joint-stock company may pay dividends. This is the profit that holders of securities receive in accordance with their share in the authorized capital of the enterprise. Dividends are the most important indicator of a company's performance. They are charged from the net profit.
How to calculate dividends, help to understand the established methodology. This procedure is regulated by law. The determination of the portion of the net profit that will be used to pay dividends occurs at a meeting of shareholders. How this process occurs, should be known to each owner of securities.
Dividend concept
Dividends represent the profit that the shareholder receives when he invests his funds in the charter capital of the organization. These funds are transferred per share. Part of the net profit that the organization receives at the end of the reporting period may be used to pay dividends. The decision on the amount of payments is made at a general meeting of shareholders.
Calculate the size of dividends on shares each holder of securities can, after it has been established the amount of funds that will not be directed by the organization for self-development or investment activity. The calculation is gradual. For this, accounting data, as well as statutory standards, are applied.
In other words, the dividend is the share of net profit per share. It is distributed in proportion to the number of securities, taking into account their types and categories. The size of payments is set as a percentage of the face value or in cash.
The profit per share cannot be higher than the level established by the supervisory board. Therefore, the board of shareholders cannot raise the level of dividends approved by the board of directors.
Dividends are paid exclusively by joint-stock companies or LLCs. According to the legislation, only those companies that carry out operations with securities in the stock market are required to publicly post information on payments made.
How to calculate dividends of LLC or JSC? This procedure is carried out using a specific technology. It is determined by regulatory documents at the state level.
Types of Dividends
Before you find out how to calculate dividends, you should familiarize yourself with existing types of such payments. They depend on a number of characteristics of securities.
Shares are simple and preferred. In the first case, the securities provide their holder with the right to vote at a meeting of shareholders and reflect his share in the authorized capital of the organization. They give the right to profit and the corresponding part of the property upon liquidation of the company (after repayment of debt to creditors).
Ordinary shares are considered securities with a fairly high risk ratio. If the company received insufficient net profit in the reporting period or it was decided to direct all funds to the development of the company, the shareholder may not receive dividends in the current year at all.
Calculate dividends on preferred shares it will be easier, knowing the features of these securities. They do not give their owner the right to vote in the general meeting.However, such shareholders are the first to receive income in the distribution of net profit. Moreover, the level of risk will be much lower than for the owner of the previous variety of securities. Also, upon liquidation of the organization, the holder of preferred shares receives a priority right to receive an appropriate share of the property.
In other words, in a situation where there is a distribution of net profit, the owner of preferred shares is more likely to profit from his securities. Priority is reserved for him in the distribution of liquidation payments. Since this type of securities does not have a high level of risk, payments on it will be minimal. Holders of ordinary shares can get more income. However, the risk in this case will be much higher.
The value of shares in the stock market will be greater if the company pays dividends steadily, and the size of the distributed net profit is quite high. Therefore, companies engaged in such trading are interested in paying obligations on their securities. In this case, the value of the company itself is growing.
Dividends are also distinguished by the period of payment. There are securities that are paid once a year, quarter, six months. According to the method of repayment, cash dividends and paid in the form of property are allocated.
What stocks pay dividends?
Before, how to calculate dividends for the founders of LLC or AO, you should consider for which shares payments are possible. They are produced only on those securities that are fully paid by the participants and are in their hands.
However, dividends are not accrued on certain groups of securities. This is possible if the shares have not yet been placed (not issued) in circulation. Also, some of the securities that were purchased by the supervisory board and are on the balance sheet of the organization are not involved in the distribution of net profit. Such shares may be withdrawn from circulation at the request of the general meeting of members of the company. This also applies to those securities that were not paid in part or in full during the acquisition process, as well as those received for this reason on the balance sheet of the enterprise.
In all other cases, dividends are paid in accordance with the size of the distributed net profit. Its undistributed part is directed to the modernization and development of the company. For these funds, they purchase new equipment, introduce more advanced production cycles, etc. If at a meeting of shareholders it is decided to direct all net profit to the development of the company, dividends on ordinary shares will not be paid.
The profit that remains after the payment of dividends is called retained. It is reflected in the corresponding balance sheet.
Several situations are legally defined when calculate dividends on shares not allowed. In this case, it is forbidden to declare annual payments of profit on the company's securities in circulation.
Such a situation may arise if the authorized capital has not been paid in full. Dividends are not paid when the requirements for the amount of the net asset value of the organization are not met. It is forbidden to carry out such a procedure until the repurchase of all shares (at the request of shareholders). The law does not allow dividends to be paid if signs of bankruptcy appear (or are likely) after the process.
Taxation
Before how to calculate stock dividendsYou should also consider tax laws for such payments. A joint-stock company or LLC is obliged to collect and timely transfer taxes to the budget when distributing net profit between holders of securities. This amount is withheld by the organization when making such payments.
Such transfers can be made once a quarter, year or six months.It depends on the type of securities and the accounting procedure at the enterprise and applies only to joint-stock companies. LLC accrues dividend tax once a year.
The taxable base is the income of a member of the company received on shares owned by him. This profit is received by shareholders from the company in the process of distribution of net profit.
Calculate dividend tax an organization may, after determining the size of its net profit according to the results of activities in the reporting period. To do this, from the income of the company, deductions are made to mandatory funds and the state budget. After determining the net income at a meeting of participants in the company, a decision is made on the amount of retained earnings and the dividend fund.
Also applies to the tax base profit received from foreign companies and recognized by the legislation of other countries as a fund for paying dividends. Therefore, funds established by law should also be transferred from such income.
Dividends also include payments to participants from retained earnings of previous years.
The nuances of determining the tax base
Before how to calculate the amount of dividends, it is necessary to take into account a few more nuances regarding the calculation of taxes. They are not recognized as income of the holder of securities, from which funds are deducted to mandatory funds, liquidation payments received by him. However, they should not exceed the size of the participant’s contribution to the authorized capital.
Not subject to tax are payments made by the company in the form of transfer of ownership of shares. Dividends are also not recognized as funds that a company consisting of the contributions of a nonprofit organization contributes to the charter activities of such a nonprofit organization.
Dividends can only be recognized payments from net profit, which are made in proportion to the share of each participant. For the LLC, a special procedure for the distribution of income may apply. It may not be proportional to the share of each participant. Such funds are taxed at the rate of income tax or income from individuals. 
Therefore the procedure of how to calculate dividends to the founderwill be different for different organizations. If the company is in the STS payment mode, the tax base will be accrued in the same way as for a company with a common transfer mode. But if such an organization pays dividends to a legal entity, it must also calculate income tax.
If the recipient of dividends is a legal entity that pays taxes under the simplified tax system, categories such as “income”, “income minus expenses” are also calculated using the same methodology. For dividend recipients who are in UTII payment mode, income tax on such income is not paid. Such deductions are made in a general manner.
Dividend calculation
Considering how to calculate dividends to the founder, you should initially calculate earnings per share. For this, the formula is used:
D = (SD - SRD) / KA, where D - dividends, SD - the total amount of regular dividends distributed between participants, SRD - the amount of one-time (special) dividends, KA - the number of shares.
All indicators used for calculation can be found in the regular financial statements. You cannot take the level of payments of past periods for calculation. In each case, the meeting of shareholders establishes a specific level of distributed profit. To determine a participant’s income, it is necessary to multiply the number of shares he owns by dividends calculated earlier:
Income = D * A, where A is the number of shares owned by the participant.
So it is possible calculate dividend on ordinary shares. However, in the financial world there is such a thing as reinvestment. Holders of securities may send dividends received to purchase new shares. This is reinvestment.This fact must be taken into account when making calculations. At the end of the operating period and its beginning, the number of shares of a participant may change due to reinvestment.
Such calculations allow you to determine the dividend yield. This is the return on initial investment. For calculations, you need to take data on the value of the company's shares in the stock market. This indicator is constantly changing.
Profitability calculation example
Calculate the amount of dividends possible according to the above method. However, it is possible to evaluate the profitability of such investments using the calculation of profitability. To do this, consider a simple technique.
According to the above formulas, you should find the dividends that the company pays per share. Further, the stock market should consider the quoted value of the securities of the organization at the time of the study. Next, the calculation is made:
DD = D / COP, where DD is the dividend yield, COP is the quoted price of the share.
This technique allows you to compare the amount that the participant received in the form of dividends and the real value of the share. The larger the indicator presented, the greater the return on securities. This is the income that the owner receives from the use of his investments in the economic activities of the company.
To make it clear how to calculate dividends example determination of profitability should be studied in the process of determining these indicators. Suppose a participant owns 50 ordinary shares. Each of them costs 20 rubles. Dividends in the current period were paid for each security in the amount of 1 RUB. The amount of dividends will be calculated as follows:
D = 50 * 1 = 50 rubles.
The yield will be as follows:
DD = 1/20 = 0.05 = 5%
This year, investments generated 5%. If a company has been steadily paying dividends for several years, it may be beneficial for an investor to receive a small but steady income. In this case, he can invest his money in the company. However, in some cases, the person who owns the capital wants to receive a large income. In this case, he should consider financing options for a more risky project. Then the acquisition of the above shares will not be the best option. You should look for an organization that offers higher returns on securities.
Tax calculation
How to calculate dividends LLC and a joint stock company with a regular tax regime? In this case, the procedure for withholding mandatory payments to state funds and the budget should be taken into account. The calculation, deduction and transfer of such funds is carried out by the accounting service of the organization.
To calculate the amount of tax, the following formula is applied:
Н = ПД * НС * (ОД - ПД), where Н is the amount of tax that will be deducted from the profit distributed between the participants, PD is the ratio between the amount of dividends per share to the total amount of distributed profit, NS is the tax rate, OD is the total the number of dividends paid by the company, PD - dividends received by the organization from participation in the authorized capital of other companies.
The PD indicator is taken into account if the corresponding amounts were not withheld in previous periods when calculating taxes.
In determining the indicators presented, many factors have to be considered. When determining the OD indicator, it is necessary to exclude the amount of dividends that were transferred in favor of foreign companies or individuals. When calculating it, it is necessary to take into account payments from which income tax will not be withheld.
The tax rate is determined for previous dividends at the level established at the date of calculation.
When calculating the indicator of PD should take into account the "net" dividends. They previously deducted income tax. Dividends from domestic and foreign companies participate in the calculations. In this case, a situation is possible when the result of the calculation of the formula is negative.This can be observed if the OD is less than the AP. This means that the amount of dividends distributed between the participants will be less than the profit received by the organization from participating in the authorized capital of other companies. The amount of tax payment in this case is not formed, refunds from the budget are not carried out.
Preferential rate
Studying how to calculate dividendsit is necessary to apply tax rates prescribed by law. They are determined in accordance with the source of payments, as well as the type of recipient of dividends.
In some cases, the preferential rate of 0% is envisaged. It is used only for income tax. A number of conditions must be observed when applying a reduced rate.
You can use 0% tax only if the recipient of dividend income owns on the day of payment of 50% of the shares or more that form the authorized capital. Moreover, the continuous period of his ownership of securities is 365 days.
Calculation of income in the simplified tax system
To understand how to calculate dividends in the simplified tax system, you should consider the procedure with a specific example. Suppose an organization pays taxes in this mode at a rate of 6%. If you want to pay dividends to an individual, you should calculate the part of the net profit due to him. Suppose this amount was 60 thousand rubles.
First determined NDLF. A private person is a resident of the Russian Federation, so the tax rate is 13%:
H = 60 * 13% = 7.8 thousand rubles.
How to calculate dividends? PSimple calculation is used:
D = 60 - 7.8 = 52.2 thousand rubles.
A member of the organization receives this amount on the established day of dividend payment. At the same time, the organization transfers the amount of tax to the budget.
Having examined the technology of how to calculate dividends, each owner of securities will be able to determine the income due on their securities.