Spillover Dividend
A special type of dividend where the payment year and the taxable year for it are at different times. Most often this occurs in a situation when the dividend has been declared near the end of the calender year (during the fourth quarter), but the actual distribution date of the dividend payment does not occur until the first quarter of the following year. Investopedia Says:
For example, XYZ Corp. declared that shareholders on record on December 16, 2006, would be entitled to receive a $2.00 dividend on each share that they own - with the distribution date on March 1, 2007. For income tax related purposes, the shareholders will need to include the $2.00-per-share dividend when they file their annual tax return for 2006, not 2007. Related Terms:
Calendar Year
Declaration Date
Dividend
Payment Date
Record Date
Tax Year |