Dividend
The part of profit a company pays its shareholders, usually once a year.
What is a dividend?
A dividend is the part of a company's profit that the shareholders' meeting decides to pay out, in cash, to its owners. It is paid per share.
Not every company pays dividends. Some prefer to reinvest profit to grow, and the shareholder gains, if at all, from a rising price.
Over the long run, reinvested dividends have been a huge part of stock-market gains. From 1871 to 2026 the price of US shares rose about 64-fold after inflation. With dividends reinvested, the same sum grew about 44,000-fold.
In Romania, dividends received by individuals are taxed. The current rate is in the rules table.
100 shares with a 2-lei dividend pay 200 lei gross, before tax.
What is the dividend tax in Romania in 2026?
16% on dividends paid from 1 January 2026, withheld by the paying company. Dividends paid on 2025 interim accounts stay at 10%.
Does reinvesting dividends matter?
Enormously, over the long run. From 1871 to 2026 the price of US shares rose about 64-fold after inflation; with dividends reinvested, about 44,000-fold.
Related terms
Sources
- Robert J. Shiller, monthly US stock market data (ie_data.xls), accessed 27 September 2026 · shillerdata.com
- BNR inflation target: 2.5% ± 1 percentage point · www.bnr.ro
Checked on 27 September 2026. Rules and figures can change.
This page explains mechanisms and shows what happened in the past. It does not recommend products, say what to buy, or take your situation into account.