What is the difference between a dividend and a return of capital?

A dividend distributes earnings to shareholders, while a return of capital returns previously contributed capital. Distributions.online tracks them separately so reporting and tax treatment stay distinct.

Can one company run multiple distribution types?

Yes. A company can manage dividends, preferred dividends, interest, principal repayments, and redemptions across multiple securities from the same dashboard.

How are record dates and payment dates handled?

Each distribution has its own record date and payment date. Eligibility is determined from holdings as of the record date.

Are international investors supported?

Wire transfers support applicable domestic and international payment requirements, and validation flags missing tax documentation before payments are released.

Distribution types

Manage Different Distribution Types From One Platform

Companies have different securities and different obligations. Distributions.online provides common infrastructure for managing them — equity, preferred, fund, real estate, and debt securities alike.

Cash Dividends

What it is: A cash payment made to shareholders from company earnings.
Who uses it: Private companies and operating businesses with common shareholders.
How it works: Declared per share against a record date and paid on a stated payment date.
What's required: Share register, per-share rate, record date, tax documentation, banking details.

Preferred Dividends

What it is: Fixed or variable distributions paid on preferred shares, often ahead of common holders.
Who uses it: Companies with preferred share classes and negotiated dividend rates.
How it works: Calculated from the stated rate and accrual terms of the preferred series.
What's required: Series terms, accrual schedule, holder register, payment instructions.

Special Dividends

What it is: A one-time distribution outside the regular dividend schedule.
Who uses it: Companies distributing proceeds from an event or exceptional performance.
How it works: Declared as a discrete distribution with its own record and payment dates.
What's required: Board authorization, per-share amount, eligible holder list.

Fund Distributions

What it is: Periodic distributions paid to investors in a fund or investment vehicle.
Who uses it: Funds, feeder vehicles, and multi-vehicle managers.
How it works: Allocated across investors based on ownership or the fund's methodology.
What's required: Investor register, allocation method, distributable amount, banking data.

Income Distributions

What it is: Distributions of income generated by the underlying assets.
Who uses it: Real estate issuers, income funds, and yield-oriented vehicles.
How it works: Calculated from income available for distribution in the period.
What's required: Period income, investor allocations, withholding treatment.

Profit Distributions

What it is: Distribution of profits to eligible owners, members, or investors.
Who uses it: LLCs, partnerships, and operating entities with profit-sharing terms.
How it works: Allocated by ownership percentage or the entity's operating agreement.
What's required: Ownership schedule, distributable profit, member records.

Return of Capital

What it is: A distribution that returns invested capital rather than income.
Who uses it: Funds, real estate issuers, and SPVs returning contributed capital.
How it works: Tracked separately from income distributions for reporting and tax purposes.
What's required: Capital account balances, distribution amount, investor records.

Interest Payments

What it is: Recurring interest paid to holders of debt instruments.
Who uses it: Debt issuers, note programs, and lending vehicles.
How it works: Calculated from principal outstanding, rate, and accrual convention.
What's required: Note register, rate and day-count basis, payment schedule.

Coupon Payments

What it is: Scheduled payments associated with bonds and coupon-bearing securities.
Who uses it: Bond issuers and structured note programs.
How it works: Paid on the coupon schedule to holders of record.
What's required: Coupon schedule, holder register, payment instructions.

Principal Repayments

What it is: Scheduled or final repayment of principal on a debt security.
Who uses it: Debt issuers with amortizing or maturing instruments.
How it works: Processed against the amortization schedule or at maturity.
What's required: Outstanding principal, amortization schedule, holder banking data.

Redemptions

What it is: Payments made when a security is redeemed in whole or in part.
Who uses it: Issuers redeeming shares, units, or notes.
How it works: Calculated on the redemption price and quantity redeemed.
What's required: Redemption terms, holder elections, settlement instructions.

Liquidation Distributions

What it is: Final distributions made when an entity or vehicle is wound down.
Who uses it: Funds, SPVs, and entities completing a liquidation.
How it works: Distributed by the waterfall or priority defined in the governing documents.
What's required: Final balances, priority waterfall, investor records, tax documentation.

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FAQ

Frequently asked questions

What is the difference between a dividend and a return of capital?: A dividend distributes earnings to shareholders, while a return of capital returns previously contributed capital. Distributions.online tracks them separately so reporting and tax treatment stay distinct.
Can one company run multiple distribution types?: Yes. A company can manage dividends, preferred dividends, interest, principal repayments, and redemptions across multiple securities from the same dashboard.
How are record dates and payment dates handled?: Each distribution has its own record date and payment date. Eligibility is determined from holdings as of the record date.
Are international investors supported?: Wire transfers support applicable domestic and international payment requirements, and validation flags missing tax documentation before payments are released.