In Switzerland, a dividend stock is simply a dividend payment that is fulfilled via shares rather than a cash payment. Normally a dividend stock is chosen by a company in the event that stockholders wish to 'cash out' their investment returns, and the business holding the stock does not currently have the cash to return to the shareholders. Simply put, its a stand-in in place of cash.
It is also a good point to make that although a dividend stock is normally reserved for companies to utilise in the event they don't have sufficient cash, it can also be used when there is cash available but the business has planned on reinvesting the money. This decision is normally made by company management.
A large benefit to dividend stocks is that the stocks themselves are not taxed. But, once a holder decides to sell those stocks, they are subject to tax. You can speak to our consultants for more in-depth information on this, as well as which tax percentage stocks will be subjected to.
Most effective ways to invest in dividend stocks in Switzerland
As Switzerland features one of, if not the most, stable economy in the world, it has brought international investors in droves to the country. From this influx of investors and business developers, Switzerland has also formed government legislation and taxes specifically developed to assist those investors. We have far more information about launching a business in Switzerland as well as information on taxation and registration on our website.
Investing in Switzerland is almost entirely effortless when dividend stocks are concerned. On top of this, it is also possible to deal with American Depository Receipts. These are stocks which businessmen and women can purchase and they are traded on the American exchange markets.
If you have further questions or would like some assistance in forming a company in Switzerland or investing in the country, especially with dividend stocks, we highly recommend you speak to our specialists who are able to give you a great deal of assistance with all of your requirements.