Think of a milk cow
An old investor saying goes that a stock is like a milk cow. You can sell the cow and get money once — or you can keep it and get milk (dividends) year after year.
A dividend is simply a portion of the company's profit that is distributed to shareholders. If you own shares in a company that pays dividends, you receive money directly into your account — without selling a single share.
In short: Dividend = your share of the company's profits, paid directly to you.
A concrete example
Let us say Equinor decides to pay 12 NOK per share in dividends. You own 100 Equinor shares. Then you receive:
The calculation
100 shares × 12 NOK = 1,200 NOK directly into your account — without doing anything at all.
What is dividend yield?
Dividend yield shows how much dividend you get as a percentage of the share price. It is the key figure you use to compare dividends between different companies.
Formula: Dividend yield = (Dividend per share ÷ Share price) × 100
Tax on dividends
Dividends are not tax-free — but there are smart ways to save tax.
Share savings account
With a share savings account (ASK) you do not pay tax on dividends or gains until you withdraw money from the account. You can reinvest dividends tax-free year after year!
Tip: Most private individuals should use a share savings account (ASK). This defers the tax and lets your money grow much faster over time.
"What you send out comes back to you — often tenfold. Give of what you have, and more will come."
— Florence Scovel Shinn