Does eToro pay dividends?

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What are dividends and how do they work? 

Companies can decide whether they'd like to distribute some of their net profits of surplus to their shareholders. This is called a dividend. It is a regular payment to shareholders and can be issued in multiple ways such as cash, stocks or others. 

We do not recommend eToro for long-term investors focusing on collecting dividends from US stocks. This is because the previously mentioned tax: eToro deducts the 30% default US dividend tax, rather than the – usually lower – tax treaty rate deducted by most other brokers.

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ETF or indices dividends

ETFs and indices also pay dividends if some or all of the securities within the ETF/index pay dividends. They are either paid in cash or in more exposure within the ETF.

CFD dividends

CFDs with stock as underlying pay dividends. In this case, the broker owns the shares, therefore payment comes from the broker itself. Sometimes - as in eToro's case - with extra tax.

Risk disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

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Author of this article

Bence András Rózsa

Author of this article

Bence András Rózsa is an experienced broker analyst. Having an MSc in international economy and finance, he focuses on equities, cryptos and newcomer financial services. He also has 2+ years of experience within the brokerage industry specializing in stock- and CFD/forex brokers, crypto providers and robo-advisors.

Bence András Rózsa

Broker Analyst

Bence András Rózsa is an experienced broker analyst. Having an MSc in international economy and finance, he focuses on equities, cryptos and newcomer financial services. He also has 2+ years of experience within the brokerage industry specializing in stock- and CFD/forex brokers, crypto providers and robo-advisors.

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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