Spillover Dividend


DEFINITION of 'Spillover Dividend'

A type of dividend in which the payment year and the taxable year occur at different times. Most often, this occurs 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.

BREAKING DOWN 'Spillover Dividend'

For example, XYZ Corporation declared that shareholders on record on December 16, 2010, would be entitled to receive a $2 dividend on each share that they own - with the distribution date on March 1, 2011. For income tax related purposes, the shareholders will need to include the $2-per-share dividend when they file their annual tax return for 2010, not 2011.

  1. Record Date

    The cut-off date established by a company in order to determine ...
  2. Dividend

    A distribution of a portion of a company's earnings, decided ...
  3. Declaration Date

    1. The date on which the next dividend payment is announced by ...
  4. Calendar Year

    The one-year period that begins on January 1 and ends on December ...
  5. Tax Year

    The period of time which is covered by a particular tax return. ...
  6. Payment Date

    The date on which a declared stock dividend is scheduled to be ...
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