Revenue: The What is it? Understand how it works in practice!

If you've ever found yourself researching how to increase your income in a more stable and consistent way, or how to guarantee an extra source of income in addition to your salary, you've certainly heard about the benefits that proceeds can offer. Whether you're a beginner investor or a more experienced investor looking to optimize your strategy, understanding how these returns work can be the first step toward achieving your long-term financial goals.

In this article, you'll learn what dividends are, how they work, and why they can be a key part of your financial independence plan. We'll explore the main types of dividends, their advantages, and what you need to know to start receiving them. Ready to transform your relationship with investments?

Dividends: what is it?

Dividends are the income distributed by companies to their shareholders as a reward for their trust and investment in the business.

These can be dividends, interest on equity, bonuses, or even subscription rights, each with its own characteristics. Basically, by investing in a company's shares, the shareholder becomes entitled to a share of the profits, which are distributed regularly or on specific occasions, depending on each company's policy.

Dividends are crucial in the financial market, especially for investors seeking passive income. They are a form of direct return to shareholders, encouraging long-term investment and portfolio stability. Furthermore, dividends can indicate a company's financial strength, as companies that consistently distribute profits are seen as more mature and profitable, ultimately attracting even more investors.

How and when dividends are paid

To take advantage of dividends, it's essential to understand how and when they're paid. The process begins with declaration date, which is the day the company officially announces that it will distribute dividends and how much they will be. From this date onwards, two other important dates are set: payment date, when the amount will be effectively credited to the shareholders' account, and the “ex” date of proceeds, which marks the last day to purchase shares and be entitled to dividends.

THE date “with” proceeds refers to the period during which shares are still eligible for the announced dividends. If you purchase shares before the "with" date, you will be entitled to the payment. The following day, the "ex" dividend date begins, and from that point on, anyone who purchases shares will no longer be entitled to that specific payment.

Types of income

There are different types of dividends a company can distribute to its shareholders. Each has its own characteristics and operating methods, impacting investors in different ways. Below, we explain the main types.

Dividends

Dividends are a portion of a company's net profit that is distributed directly to shareholders. They are paid periodically, according to the company's distribution policy, and represent one of the most common forms of income. The amount received varies depending on the number of shares the investor owns.

Interest on Equity (JCP)

JCP is a form of profit distribution similar to dividends, but with different tax treatment. The company deducts the JCP payment as an expense, which can generate a tax advantage. The shareholder, in turn, receives the amount already deducted from income tax.

Bonuses

Bonus shares occur when a company distributes new shares to its shareholders without requiring them to invest more money. They're a way to increase the number of shares an investor owns, reflecting the appreciation of their equity.

Splits and Inplits

A stock split increases the number of shares a shareholder owns, but without changing the total value of the investment, only reducing the unit price. A reverse stock split does the opposite, combining several shares into a single one, typically to increase the value per share. Both events are purely operational and do not change the value of the investment.

Subscription Rights

Subscription rights give shareholders the opportunity to purchase new company shares before they are offered to the general public, typically at a more attractive price. This right is temporary and, if the shareholder does not exercise it, expires, but it can be traded on the stock exchange while it is valid.

How to make it work as passive income

Turning dividends into a source of passive income is a common strategy among investors seeking financial security and stability. To achieve this, many choose to focus their investments on companies that pay dividends consistently. These companies, generally more mature and stable, offer regular dividends and interest on equity, allowing investors to build a portfolio geared toward continuous dividend income.

One of the great benefits of this strategy is the possibility of reinvest the proceeds received, enhancing the effect of compound interestWhen the investor uses the proceeds to acquire more shares, he increases his stake in the company and, consequently, the value of the next proceeds.

Over time, this practice accelerates wealth growth, creating a virtuous cycle where money works to generate more money. Thus, reinvesting earnings is a powerful way to maximize gains and accelerate wealth building.

Impact of Dividends on Share Price

Paying dividends can have a direct impact on a company's share price. When a company announces that it will distribute dividends, especially dividends, its shares often become more attractive, which can increase the price in the short term, as many investors buy shares to take advantage of the benefit. However, shortly after the dividend payment date, the share price tends to automatically adjust to reflect the company's capital outflow.

This adjustment occurs because, when distributing part of its profits, the company's equity value decreases. For example, if a stock is trading at R$ 50 and the company distributes R$ 2 in dividends per share, the day after the dividends are paid, the share price may fall proportionally, trading at R$ 48. This is a natural market adjustment and does not represent a loss for the investor, since the dividends were received in cash or in the form of new shares.

This price fluctuation is important to consider for those who invest with a focus on dividends, as it is necessary to understand that the value of the shares adjusts, but the investor's total equity remains the same, now divided between the value of the shares and the dividends received.