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What are paid dividends?
What are paid dividends?
Updated over a week ago

To apply for a certain company's dividends, you must purchase shares prior to the ex-dividend date (ex-date).

For example, let's take a look at IBM shares with an ex-date of 9 November 2021. If you expect to receive dividends, you must purchase shares before the end of the main trading session on 8 November 2021 and hold them until the next day on 09.11.2021. In this case, you will receive the dividends even if you sell the shares on 9 November 2021.

Dividends are calculated using the formula:

Dividends = number of shares= * dividend per share - taxes

When dividends are less than 1 cent (0.01 USD), mathematical rounding to the nearest whole cent is performed. For example, 0.007 USD will be rounded up to 0.01 and 0.003 rounded down to 0. Please take this into account when choosing the investment amount.

The dividend tax for American stocks is 15%.

Dividends may be credited within a few days after the payment date but are usually credited directly on the payment date.

Information about payment dates can be found in the 'Info' tab under each instrument's chart.

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