Dividend glossary (UK companies)

Short, plain-English definitions for the terms that come up on our pages about UK-listed, dividend-paying companies such as the FTSE 100.

Dividend: A cash payment a company makes to its shareholders, usually out of profit, decided by its board of directors.
Ex-dividend date: The cut-off date: you need to hold the share before this date to receive the upcoming dividend. Buying on or after it means the seller, not you, gets that payment.
Record date: The date the company checks its shareholder register to work out who is entitled to the dividend, usually shortly after the ex-dividend date.
Payment date: The date the dividend cash actually reaches shareholders, typically some weeks after the record date.
Dividend yield: A company's annual dividend per share divided by its share price, shown as a percentage — a rough measure of income return, not total return.
Withholding tax on dividends: Tax deducted at source before a dividend reaches the shareholder. Most UK companies do not withhold tax on dividends paid to shareholders — this is general context, not tax advice.
FTSE 100: An index of the 100 largest companies listed on the London Stock Exchange by market value.
Blue-chip company: A large, well-established, financially sound company — the term has no official definition, but is commonly used for companies like most FTSE 100 members.