{"id":38855,"date":"2025-03-04T14:46:35","date_gmt":"2025-03-04T13:46:35","guid":{"rendered":"https:\/\/fidulex.ch\/?p=38855"},"modified":"2025-03-04T15:13:12","modified_gmt":"2025-03-04T14:13:12","slug":"dividends-in-switzerland-fiduciaire-fidulex","status":"publish","type":"post","link":"https:\/\/fidulex.ch\/en\/dividends-in-switzerland-fiduciaire-fidulex\/","title":{"rendered":"Dividends in Switzerland"},"content":{"rendered":"
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Dividends in Switzerland: Definition<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In Switzerland, dividends<\/strong> are a means of compensating a Swiss company's shareholders<\/strong>. They differ from a salary in that they can take many forms and can also provide certain benefits<\/strong> in comparison.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Dividends vs. Salary<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Benefits of dividends<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Dividends are generally more advantageous<\/strong> for shareholders, especially in terms of taxation. Salaries are generally taxed more heavily than dividends.<\/p>

In addition, dividends are not subject to social security charges. social security charges<\/strong>, which increases the amount received by shareholders.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Salary benefits<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Even so, salaries offer a number of advantages over dividends. Salaries offer greater security, since they provide regular and therefore more stable pay. What's more, unlike dividends, they offer social security benefits such as AHV<\/strong> or IV<\/strong>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The Different Types of Dividends<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Cash Dividends<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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As the name suggests, this is an amount paid to shareholders in cash.<\/strong>.\u00a0<\/p>

This is the most common type of dividend paid by Swiss companies, with over CHF 53 billion paid in cash dividends in 2024 according to the Swiss Performance Index (SPI)<\/a><\/strong>.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Stock Dividends<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A shareholder can also receive additional shares, without receiving cash. This allows a company to keep its cash in order to continue developing<\/strong> the company.<\/p>

Shareholders can also benefit if the value of the the action<\/strong> increases. However, the opposite situation is also possible, if the share loses value. These types of dividends can therefore bring security, but also a certain amount of risk.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Dividends in Kind<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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This type of dividend is less common than stock and cash dividends, but is also a possibility. This type of remuneration takes the form of goods and\/or services, called \"active.\"<\/strong><\/p>

A company that produces wine or chocolate, for example, can offer its products to its shareholders; they will therefore be considered assets.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Why Choose Dividends?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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While attractive salaries are attractive, dividends are a clearer indication of the financial stability<\/strong> of a company. In turn, this makes a company more attractive to current and future investors.<\/p>

Giving stock dividends allows Swiss companies to keep their funds for the future like the finance<\/strong> of new projects, while rewarding shareholders by increasing their stake in the company. Indeed, expanding companies often need to reinvest their money in order to grow.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Why Don't Some Companies Pay Dividends?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Some companies do not<\/strong> give out dividends to their shareholders. There are usually several reasons for this decision.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Financial Instability<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Not paying dividends can be potentially negative<\/strong> and can be a sign of a company in financial difficulty, although this is not always the case. However, a company in difficulty is more likely to keep its money in order to recover.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Growing Company<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Indeed, if a company is growing fast, as is the case in many IT companies, instead of distributing profits to shareholders, it will reuse all its money to build up its business. developing<\/strong> even more. It does this, for example, by hiring more staff or improving its products.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Rules and Conditions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In Switzerland, dividends are subject to a number of conditions and are strictly regulated by the Swiss Code of Obligations (CO)<\/a><\/strong>. In particular, art. 675 sets out important rules concerning the payment of dividends:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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