Dividend and Bonus MCQs

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

This set of multiple choice questions (MCQs) focuses on the issues of dividends and bonuses. You can use this quiz to help prepare for your exams, interviews, and other assessments. Just click the “Start quiz” button to get going!

Dividend and bonus mcqs

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Frequently Asked Questions

What is a Dividend?

A Dividend is a payment made by a company to its shareholders. The payment amount is typically based on the number of shares owned by the shareholder. Rewards can be paid in cash or stock.

When are Dividends paid?

Yes, Dividends are taxable as income. However, there may be some tax breaks available for certain shareholders. For example, dividends received by qualifying shareholders may be eligible for the qualified dividend tax rate.

When are Dividends paid?

When are Dividends paid?

Why are qualified Dividends taxed at a lower rate?

The Qualified Dividend Tax Rate is a reduced tax rate available to certain shareholders. This tax rate is intended to provide tax relief for those who invest in dividend-paying stocks.

What is a DRIP?

A DRIP, or dividend reinvestment plan, is a program through which shareholders can reinvest their dividends in the company’s stock. This allows the shareholder to purchase additional shares of the company without going through a broker.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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