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How does DEGIRO pay dividends?

 

If you own a stock on your DEGIRO brokerage account on the ex-dividend date and teh record date then you have the right for the company's dividends for that period. DEGIRO will deposit the dividends minus the tax on your account on the dividend payment date.

 

What are dividends and how do they work?

 

Dividends are a regular cash payment from the company to the owners of the stock. Usually, companies pay dividends once, twice or four times a year, but there are companies that return cash to the owners each month.

 

How to receive DEGIRO dividends

 

You have to own the stock on the ex-dividend date and the following day, the record date. Afterwards, DEGIRO will deposit the dividend payment minus the tax advance in your account on the dividend payment date.

Stock dividends

Companies usually return part of their cash flow to owners each year. These regular or extraordinary payments are called dividends. Dividends are paid on a monthly, quarterly, or yearly basis and their amounts are determined by the company's board of directors. 

ETF dividends

ETF-s pay dividends similarly to companies. Please note that the tax residence of the fund (ETF) might be different from its holdings and thus might be subject to different dividend tax rules.

DEGIRO further reading:

Author of this article

Bence András Rózsa

Author of this article

Bence’s purpose is to help you to understand the logic behind financial services. In his master’s studies, he specialised in business economy and finance to be able to give you a clear picture of the brokerage world. Having reviewed multiple brokers and robo-advisor services, his goal will always be to guide you in the world of investing as it is.

Bence András Rózsa

Broker Analyst

Bence’s purpose is to help you to understand the logic behind financial services. In his master’s studies, he specialised in business economy and finance to be able to give you a clear picture of the brokerage world. Having reviewed multiple brokers and robo-advisor services, his goal will always be to guide you in the world of investing as it is.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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