Does Trading 212 pay dividends?
Here, we take a closer look at whether Trading 212 pays dividends. Dividends can be beneficial for more passive investing types.
What are dividends and how do they work?
Companies can decide whether they'd like to distribute some of their surplus net profits 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 or stocks, among others.
68% of retail CFD accounts lose money
How to receive dividends at Trading 212?
If you are eligible, Trading 212 will directly process the payments to your account. For Invest/ISA accounts, they are paid within a few days or even weeks later.
For CFDs, dividends will be paid on the ex-dividend date.
Invest and ISA dividends
Pension funds and other ISA-type investments can also pay dividends, as ISA or Invest Account investments can hold stocks within their portfolios, which of course can pay dividends. Most of the time, they are - or can be - tax-free.
CFDs with a stock as the underlying asset pay dividends. In this case, the broker owns the shares, therefore payment comes from the broker itself.