If you’re investing in stocks, ETFs, or indices on eToro, you may be wondering if you’ll receive any dividend payments. The good news is that eToro does pay dividends.
Let’s explore the details of how they work and how you can track your payments.
First of all, let’s define what a dividend is. When a company makes a profit, it may distribute a portion of that profit to its shareholders as a dividend payment. Dividends are usually paid on a quarterly basis, although some companies may pay them monthly, semi-annually, or annually.
How Dividends Work on eToro
On eToro, if you hold a BUY position in a stock, ETF, or index that pays a dividend, you’ll receive the dividend payment to your available balance. If you hold a SELL position, the dividend payment will be deducted from your available balance. It’s important to note that you’ll only receive dividend payments if you hold BUY positions for those stocks or ETFs.
So, when does eToro pay dividends?
There are two important dates to keep in mind: the Ex-Dividend date and the dividend payment date.
Ex-Dividend
The Ex-Dividend date is the cutoff date of when you have to own the stock to receive dividends. You should hold the stock on eToro on the day before the ex-dividend date to make sure you’re eligible to receive that dividend. The other important date is the dividend payment date, which is the date when the company normally distributes the dividend.
It’s worth noting that if you’re trading CFD positions, you don’t even need to wait for the dividend payment date – you’ll receive the dividend payment on the ex-dividend date. If your positions are secured with the real asset (which is normally the case), you’ll get your dividend payment on the dividend payment date. This is valid for both stocks and ETF dividends.
Track Dividend Dates
Now, you may be wondering how you can track dividend dates for your eToro stocks and ETFs. Fortunately, there are a few free apps that track dividend payment, ex-dividend, and even earnings dates for all your eToro stocks. All you need to do is create an account and enter your eToro username. It’s completely safe, and no connection to eToro is required.
In A Nutshell
eToro does pay dividends for stocks, ETFs, and indices, and you’ll receive the dividend payment if you hold a BUY position. The Ex-Dividend date and dividend payment date are important to keep in mind.
By understanding how dividends work and tracking your payments, you can make the most of your eToro investments and potentially earn a stable and growing income stream.
