Zakat on Received Dividends

Short answer: Once received, dividends are ordinary cash that merges with your other money. There is no separate rate — whatever remains on your annual zakat day is paid at 2.5% as part of your total cash. Details: Dividends already spent before the zakat day carry no zakat — zakat falls on what exists on that day. Bonus shares (stock dividends) follow the ruling of the parent holding: market value if part of a trading portfolio, or the long-term-shares method otherwise. Evidence: Quran 2:267; Sahih al-Bukhari 1454 (2.5% on money); Shaykh al-Uthaymin's practical guidance on income earned mid-year (one annual reckoning date). Application: No separate ledger needed — on your zakat day add bank + brokerage + cash in hand and pay 2.5%. Purification of dividends from mixed companies is a separate issue — see the related fatwa. For complex individual cases, consult a qualified scholar.