Does eToro Pay Dividends?

Written by Nick Zelver

Fact checked by Wikitoro Team

Updated Mar, 2024

Yes, eToro does pay dividends. If you have a BUY position in a dividend-paying stock, index, or ETF, the dividend amount, after tax deductions, is credited to your available cash balance. Conversely, for a SELL position, the dividend value is deducted from your available cash.

A Personal Journey

My exploration on eToro aimed to understand how it handles dividend payments. This article shares my personal experiences and insights into this broker's dividend payment process, focusing on its efficacy and transparency.

Using my verified trading account, I diversified my portfolio by investing in various stocks, indices, and ETFs known for paying eToro dividends. To test the platform's dividend payment system, I strategically placed both BUY and SELL positions across different assets. My objective was to observe firsthand how it manages payments and deductions.

My Findings Were Quite Revealing

1. For each of my open BUY positions in dividend-paying assets, I received dividend payments directly into my cash balance. These payments were made post-tax deductions, aligning with the standard practice of withholding taxes on dividends. The process was seamless and transparent, with each reflecting accurately in my account.
2. On the flip side, for the SELL positions I held in dividend-paying assets, the scenario was different. In these cases, the dividend value was deducted from my cash balance. This deduction is a standard practice in short selling, where the investor is responsible for paying out dividends to the actual stockholder. eToro's system automatically handled these deductions, ensuring that the process was straightforward and without any need for manual intervention.

Throughout my experimentation, eToro's platform remained user-friendly and intuitive. The dividend payments and deductions were clearly itemized in my account statements, allowing for easy tracking and reconciliation.

This personal experiment confirmed that the platform efficiently handles dividend payments. For investors holding BUY positions, dividends are a welcome addition to their returns, while those in SELL positions need to be mindful of the corresponding deductions. My takeaway is that eToro is not only about trading but also about providing a comprehensive investment experience, dividends included.

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

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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 does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

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.