​​In investing, a dividend is a distribution of profits by a corporation to its shareholders.

Not all companies on the stock market choose to pay dividends to their shareholders. Newer companies, or those in fast-paced sectors such as technology often opt to redirect their profits straight back into the company to support continued growth.

Some examples of companies that don’t pay dividends are Tesla, Netflix, Amazon.

If you invest in US stocks through the Plum app, we’ll pay dividends where those companies choose to issue them.

Where dividends are issued, they’ll be paid quarterly each year and credited to your Primary Pocket. You’ll see the transaction in your Activity section of the app.