Dividends are a decisive advantage for shareholders. In addition to the traditional cash dividend, companies are increasingly relying on Dividends in kindto offer investors added value and at the same time protect their liquidity.
This article will provide you with a comprehensive overview of the topic of non-cash dividends and enable you to well-founded decisions meet.
What is a dividend in kind?
A Dividend in kind is a form of Profit sharingwhere shareholders have no receive cash payouts, but non-cash assets.
These tangible assets can be very different: additional shares of the company, physical products, Vouchers or Other assets. In contrast to cash dividends, dividends in kind are a way of binding shareholders to a company not only financially, but also practically or emotionally.
A common example is companies that distribute shares as a dividend in kind. Shareholders receive additional shares in the company, which increases their participation and potential influence on the company.
Other companies, especially in the consumer goods or luxury segment, offer physical products such as chocolate, clothing or vouchers for their own services.
Examples of companies with exclusive products as non-cash dividends
This form of dividend ranges from exclusive products and discounts to special services.
Below you will find an overview of various companies that offer their shareholders dividends in kind. Including the conditions that must be met in order to benefit from these advantages.
Lindt & Sprüngli AG (ISIN: CH0010570759)
Lindt & Sprüngli is a renowned Swiss chocolate manufacturer that was founded in 1898 and is known for its high-quality chocolate products. The company sells its products worldwide under various brands, including Lindt and Ghirardelli.
Shareholders receive an exclusive annual Chocolate case with a weight of 4-5 kgwhich contains a selection of Lindt specialties. The material value of the suitcase is around €300 to €400, while the collector's value can be significantly higher.
Requirements for the dividend in kind:
- Ownership of a registered share
- Entry in the Swiss share register
- Participation in the Annual General Meeting or a delivery address in Switzerland
Calida Holding AG (ISIN: CH0126639464)
Calida is a listed Swiss company based in Sursee that specializes in premium underwear and nightwear.
The company was founded in 1941 and sells its products in around 70 countries. In addition to the Swiss parent brand Calida, the group of companies also includes the French brand Aubade.
Shareholders receive a free Pyjamas worth around CHF 90 per year.
Requirements for the dividend in kind:
- Ownership of at least 20 registered shares
- Entry in the share register by the end of February
- Completion of the order form by the specified deadline (usually mid-April)
Sixt SE (ISIN: DE0007231326)
Sixt SE is a globally active German car rental company headquartered in Pullach near Munich. Founded in 1912, the company has developed into one of the largest car rental companies in the world and operates Rental stations in over 100 countries.
Sixt offers a wide range of rental vehicles, including luxury cars, limousines, small cars and vans.
Shareholders benefit from a lifetime discount of around 15 to 20 % on all rental car bookings and thus enjoy permanently discounted conditions.
Requirements for the dividend in kind:
- Ownership of at least one Sixt share (ordinary or Preference share)
- Registration of a Sixt customer account
- Proof of share ownership by e-mail
Einbecker Brauhaus AG (ISIN: DE0006058001)
Einbecker Brauhaus AG is a traditional German brewery based in Einbeck, Lower Saxony. The company can look back on a long history of beer production and is known for its specialty beers.
As a dividend in kind, shareholders receive a Six-pack of beer during the Annual General Meeting.
Requirements for the dividend in kind:
- Ownership of at least one Einbecker Brauhaus Ordinary share
- Participation in the Annual General Meeting
Carnival Corporation (ISIN: PA1436583006)
Carnival Corporation is the world's largest provider of cruise vacations, headquartered in Miami, Florida.
The company operates several well-known cruise brands, including AIDA, CostaCarnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises and Cunard.
Shareholders benefit from a On-board credit with Cruises with all of the Group's brands. It can therefore be used for Excursions, food, drinks or wellness offers can be used on board. The amount of credit varies depending on the duration of the trip.
Requirements for the dividend in kind:
- Ownership of at least 100 Carnival shares (common or preferred)
- Proof of share ownership by means of a securities account statement (not older than 28 days)
- Application for on-board credit at least 10 days before departure
Non-cash dividends List of exciting companies
| Company | ISIN | Description | Dividend in kind | Prerequisites |
| Lindt & Sprüngli AG | CH0010570759 | Renowned Swiss chocolate manufacturer | Exclusive chocolate case | Registered share, entry in the share register, participation in the Annual General Meeting or delivery address in Switzerland |
| Calida Holding AG | CH0126639464 | Swiss company with a focus on premium underwear and nightwear (Aubade brand). | Free pyjamas per year | At least 20 registered shares, registration by the end of February, order form by mid-April |
| Sixt SE | DE0007231326 | Well-known German car rental company. | Lifetime discount on rental car bookings | At least 1 share, Sixt customer account, proof of share ownership by e-mail |
| Einbecker Brauhaus AG | DE0006058001 | Traditional brewery from Lower Saxony. | Six-pack of beer during the Annual General Meeting | At least 1 ordinary share, participation in the Annual General Meeting |
| Carnival Corporation | PA1436583006 | The world's largest provider of cruise vacations. (AIDA and Costa). | On-board credit for cruises | At least 100 shares, deposit statement (not older than 28 days), application up to 10 days before departure |
Dividend in kind in Germany
Dividends in kind have become increasingly important in Germany, as they can be used both for companies and Numerous advantages for investors offers.
In Germany, the distribution of non-cash dividends is regulated by the German Stock Corporation Act (AktG). Companies that wish to distribute a dividend in kind must include this in their articles of association and put it to a vote at the Annual General Meeting of shareholders.
The approval of the shareholders is required to ensure that all parties involved are informed about the manner of the distribution and agree to it.
In addition, the value of the distributed assets must be properly assessed. This is often done by independent expertsto ensure that the value of the dividend in kind is communicated to shareholders in a fair and transparent manner.
Companies must also ensure that the tangible assets issued are actually owned by the company and are not encumbered by liabilities.
The tax treatment of non-cash dividends in Germany differs considerably from that of traditional cash dividends. If you receive a dividend in kind as a shareholder, it is generally valued and taxed at the market value of the asset received. This means that you have to pay tax on the value of the dividend in kind received, similar to a cash dividend.
However, a key advantage of a dividend in kind is that the shares received are not taxed until they are sold. This offers you a certain tax deferral, as the Tax burden shifted into the future will.
It is also important to note that the tax regulations may vary depending on the specific structure of the dividend in kind and individual tax circumstances. It is therefore advisable to seek advice from a tax advisor in advance of the distribution in order to fully understand the tax consequences and plan optimally.
Advantages of the dividend in kind in Germany
- Conservation of liquidity: Companies can use their cash reserves for other business purposes instead of distributing them as cash dividends. This can be particularly important in difficult economic times or for major investment projects.
- Tax advantages: Shareholders can benefit from tax deferral, as the shares received are not taxed until they are sold. This can lead to a reduction in the immediate tax burden and offer the opportunity to benefit from long-term increases in value.
- Increase in value: If the company's share price rises, the value of the dividend shares received also increases. This can lead to a higher return in the long term than a one-off cash payment. In addition, the receipt of tangible assets such as products or services from the company can offer shareholders a direct benefit.
Disadvantages of the dividend in kind in Germany
- Complexity of the valuation: The valuation of distributed non-cash assets can be complex and show differences between the market value and the accounting value of the asset. This requires a careful and transparent valuation to ensure the fair value of the dividend.
- Dilution: The issue of new shares can lead to a dilution of the share price as more shares are in circulation. This could depress the share price in the short term and dilute the share rights of existing shareholders.
- Dependence on the development of the company: The success of the dividend in kind depends heavily on the future development of the company. If the company gets into difficulties or the share price falls, the newly received shares could lose value. This represents an additional risk for the shareholders.
Conclusion: Everything you need to know about the dividend in kind in 2025
In short, the dividend in kind in Germany offers a Flexible and strategic profit distribution options. It enables companies to financial Resources efficient useand offers investors opportunities for capital appreciation and fiscal Advantages.
Nevertheless, both companies and shareholders should carefully consider the specific circumstances and potential risks. Sound planning is crucial in order to make the best possible use of the advantages of the dividend in kind and minimize potential disadvantages.