Dividends
A dividend is the portion of a company's profit that it distributes to its shareholders.
A dividend is the portion of a company's profit distributed to shareholders. In Germany, payment is usually made once a year after the annual general meeting, whereas US companies tend to pay quarterly.
The dividend yield (dividend / share price) is an important metric for income investors. For German companies it has historically ranged, typically, between 2% and 5%.
In Germany, dividends are subject to the flat-rate withholding tax (Abgeltungsteuer, 25% plus the solidarity surcharge), but they can be received tax-free up to the saver's lump-sum allowance (Sparerpauschbetrag, 1,000 EUR).
See taxes, dividends and allocation for your whole portfolio in one place.