eToro dividends enable users to earn returns through shares, ETFs, copy trading, and specialized smart portfolios.
eToro supports fractional shares and allow investors to receive proportional dividends based on their stake. For example, a $25 investment in a $100 stock with a 2% dividend yield earns $0.50.
Investing in CFDs with eToro credit dividends only on long positions, while short positions require paying dividends as a commission.
eToro provides “copy dividends,” where users can automatically earn profits proportional to their investments by mirroring pre-built portfolios.
Does eToro pay dividends?
eToro pays dividends on stocks if purchased as real or CFDs. The eligibility of obtaining eToro dividends depends on the direction of the operation and the trading volume.
The direction of a trade (long or short) with eToro is important in the context of earning dividends. eToro gives the option to invest in stocks in 2 ways: by buying the underlying asset, and by trading Stock CFDs. eToro pays dividends in both cases, but when trading CFDs you will earn the dividend only if you are long on the stock (if you “buy” it), while you will instead pay the dividend as a commission if you are short selling the stock at the time of the dividend payment.
The trading volume with eToro is important when earning a dividend. eToro allows investors to buy fractions of a share, and in these cases the dividend will be proportional to the amount purchased. For example, if a trader invests $25 in a $100 stock with a dividend yield of 2%, the dividend the trader will receive will be $0.50 instead of $2.
Can you invest in dividends with ETFs on eToro?
On eToro you can invest in 13 different dividend ETFs as CFD. This makes eToro not the best platform to invest in dividend ETFs, even though ETFs on eToro can be fractionated starting from $10.
The table with all eToro dividend ETFs is shown below.
| TICKER | ETF NAME |
|---|---|
| HDV | iShares Core High Dividend ETF |
| SCHD | Schwab US Dividend Equity ETF |
| DGRO | iShares Core Dividend Growth ETF |
| VIG | Vanguard Dividend Appreciation ETF |
| DIV | Global SuperDividend US ETF |
| SPYD | SPDR Portfolio S&P 500 High Dividend ETF |
| SDIV | Global X SuperDividend ETF |
| SPHD | Invesco S&P 500 High Dividend Low Volatility ETF |
| IAPD.L | iShares Asia Pacific Dividend UCITS ETF |
| UDVD | SPDR S&P US Dividend Aristocrats UCITS ETF |
| DVY | iShares Select Dividend ETF |
| NOBL | ProShares S&P 500 Dividend Aristocrats ETF |
| OUSA | O’Shares US Quality Dividend ETF |
How do copy trading dividends on eToro work?
eToro dividends work by crediting earnings automatically to traders and their copiers when dividends are distributed by a company. If you are copying a trader who invests in dividend-paying stocks, the dividends will be credited to your account on the company’s set payment date, proportional to the shares owned by the copied trader.
Additionally, eToro offers “copy dividends,” which are profits shared when a copied trader closes a position in profit. The follower receives a proportional share of the profit, based on the amount they invested in copying that trader, directly credited to their account.
How do eToro Dividend Smart Portfolios work?
eToro Dividend Smart Portfolio works by offering investors a selection of high-quality dividend-paying stocks. eToro Dividend Smart Portfolio work like an ETF, where investors can choose to invest a set amount of money and eToro automatically distributes the investment among all the dividend stocks inside the Dividend Smart Portfolio.
The eToro DividendGrowth Portfolio focuses on stocks selected based on four key factors: high market capitalization, low volatility, consistent dividend growth over the past five years, and reliable short-term dividend distributions. This portfolio is actively managed and rebalanced periodically by eToro to ensure it aligns with current market conditions and trends. A minimum investment of $2,000 is required to participate in the DividendGrowth Portfolio, making it a convenient option for investors seeking steady income and diversified exposure to top dividend stocks.
Is eToro good for dividend investing?
eToro is a good platform for dividend investing due to its flexibility, low commissions, and variety of investment methods. eToro allows users to earn dividends through several options, including fractional stocks, ETFs, CFDs (in long positions), copy trading, and dedicated Dividend Smart Portfolios.
eToro enables traders to purchase fractional shares with as little as $10 while still earning proportional dividends. This makes dividend investing with eToro more accessible to a broader range of investors.
eToro is not a good platform to invest in ETFs as ETFs on eToro are typically offered as CFDs, which incur daily fees that can offset dividend income over time.
For investors new to dividend investing or those who lack the time for research, eToro’s Copy Trading service and Dividend Smart Portfolios provide curated and automated solutions. While eToro Smart Portfolios require a minimum investment of $2,000, they offer exposure to top dividend-paying stocks with professional oversight.
| Investments on eToro | Pros | Cons |
|---|---|---|
| Stocks | Low commissions | No cons |
| ETFs | Low commissions | Many are offered as CFDs only |
| CFDs | Financial leverage allowed | Overnight commissions |
| Copy Trading | You can copy professional dividend traders | You have little control over the investments |
| Smart Portfolios | Invest in the best dividend stocks | A minimum investment of $2000 is needed |
What companies pay dividends on eToro?
eToro does not directly indicate how many stocks on their platform distribute dividends.
To identify dividend-paying stocks on eToro, you’ll need to consult eToro’s dividend calendar. The dividend calendar provides a comprehensive list of stocks that distribute dividends, along with important details like payment dates and amounts.
Best dividend stocks on eToro
The table with the best dividend stocks on eToro is shown below.
| Ticker | Company Name | Dividend yield | Dividend | Distribution |
|---|---|---|---|---|
| IBM | IBM Corp | 5.01% | $6.60 | Quarterly |
| CVX | Chevron Corp. | 3.46% | $5.68 | Quarterly |
| HAS | Hasbro Inc. | 3.40% | $2.80 | Quarterly |
| CSCO | Cisco Systems, Inc. | 3.27% | $1.52 | Quarterly |
| KO | Coca-Cola Co | 2.75% | $1.76 | Quarterly |
| JNJ | Johnson & Johnson | 2.72% | $4.52 | Quarterly |
| TGT | Target Corp | 2.63% | $4.32 | Quarterly |
| LOW | Lowe’s Companies | 2.02% | $4.20 | Quarterly |
| CME | CME Group Inc | 2.01% | $4.00 | Quarterly |
| WMT | Walmart Inc | 1.67% | $2.24 | Quarterly |
The data shown in the table is indicative, as dividends at the time of distribution may change in value depending on market and company conditions.
How do dividends on eToro work?
When you buy a stock on eToro (going long), the dividend will automatically be credited to the trader’s account. On the other hand, when you go short, the dividend will appear as a cost and will be deducted from the trader’s account.
When going long, dividends will be automatically distributed by eToro to the shareholder based on the amount of shares held.
The dividends will therefore not be automatically reinvested by eToro within the open trading position, but will be credited directly to the trader’s account.
When dividends are distributed, eToro applies a variable withholding tax (usually 30%) depending on the share.
Are the dividends in eToro automatically reinvested in the position?
Dividends on eToro are not automatically reinvested, but they will be credited to the trader’s account balance and will be available immediately.
eToro dividends can be reinvested manually by the trader by buying additional shares of the same company, or investing in other dividend-paying assets.
How to check the etoro dividends
To check the dividends earned on eToro you need to follow these simple steps:
- Enter the settings menu on the left
- Click on “account”
- Scroll down until you get to the “documents” section
- Click on the “account statement” button
- Select the desired time period
- Click on the dividends tab
To check what upcoming dividends you will receive, you need to enter eToro’s dividend calendar. From there, you will need to enter the company’s ticker (or its name) so you can check all the dividend data.
How are dividends taxed on eToro?
eToro withholds a flat percentage on dividends depending on the location of the distributing company and the trader’s country of residence. When a dividend leaves the country of the distributing company, a percentage is generally withheld depending on the jurisdiction.
The table summarizing the eToro’s dividend withholding percentages is shown below.
| Source country | Dividend withholding tax |
|---|---|
| Austria | 27.50% |
| Belgium | 30% |
| Canada | 25% |
| Denmark | 27% |
| Finland | 30% |
| France | 25% |
| Germany | 26.375% |
| Hong Kong | 0% |
| Ireland | 25% |
| Italy | 26% |
| Netherlands | 15% |
| Norway | 25% |
| Portugal | 25% |
| Spain | 19% |
| Sweden | 30% |
| Switzerland | 35% |
| United Kingdom | 0% |
| United States | 30% |
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. 51% 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.
Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
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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.