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What is a dividend?

Updated this week

A dividend is when a company shares profits with shareholders, usually as cash.


Example: If you hold 100 shares and the dividend is £0.50 per share, you’ll receive £50.

At Freetrade:

  • We add dividends to your account once we’ve received them (normally within 2 working days).

  • They’re paid into the same account you hold the shares in.

  • If paid in another currency, we’ll convert them into pounds at the market rate (no FX fee).

  • You’ll be notified when a dividend arrives.

Fractional shares also earn dividends, rounded down to the nearest 1p.

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