A dividend is a payment made by a company to its shareholders, usually in cash or additional shares, as a way to share profits. When you own shares in a company that pays dividends, you may receive regular payments as a reward for investing. Companies that generate profits can choose to:
Reinvest profits back into the business, or
Distribute a portion of profits to shareholders in the form of dividends.
Dividends provide shareholders with a way to earn income from their investments without selling their shares.
How to Earn Dividends
Invest in a company that pays dividends by purchasing its shares.
Own the shares before the ex-dividend date (the cutoff date set by the company).
If you buy shares on or after the ex-dividend date, you will not receive the upcoming dividend.
Once you hold the shares before the ex-dividend date, the dividend will be paid to you on the company’s payment date.
Remember, dividends are not guaranteed and can change based on the company’s profits and decisions.
A reliable source of information regarding the dividends and their dates is https://www.nasdaq.com/
Dividends in Plum
If you have invested in a company that pays dividends and you are eligible to receive the cash, the money will be credited into your Primary Pocket within 2-3 business days after the company makes the actual payment (Payment Date).
Keep in mind that, while the US companies pay the money in USD ($), you will receive the cash in GBP (£) or EUR (€) depending on the currency of your Plum account. There will also be a small conversion fee, already deducted from the final amount you will receive.