- CFA Exams
- CFA Level I Exam
- Topic 4. Corporate Issuers
- Learning Module 16. Analysis of Dividends and Share Repurchases
- Subject 4. Factors Affecting Dividend Policy
CFA Practice Question
Dividend payments to individuals are subject to personal income taxation ______.
B. in the year received
C. two years after received
A. only if larger than $1,000
B. in the year received
C. two years after received
Correct Answer: B
Dividends are taxable in the year in which they are received. Capital gains are taxed in the year in which they are realized.
User Contributed Comments 1
| User | Comment |
|---|---|
| davidt87 | watch how diversified the average portfolio would become if A were true |