Your capital is at risk. Other fees apply.
There are a variety of ways How to Buy Dividends with eToro.
A Guide to Dividends with eToro
What is a Dividend?
What exactly are dividends? In a nutshell, these are payments made to shareholders by limited companies. This payment can take the form of cash or another incentive, such as additional shares. To read more about this check our related post Dividends for Beginners: What Are Dividends and How Do Dividends Work?
Buy Dividends with eToro
Dividends are high dividend-paying stocks and are available in the United Kingdom. eToro has a specific list that is regularly updated so you can stay on top of the best dividend-paying stocks in the UK. The list of high dividend stocks not only shows you which companies are performing well, but it also shows you how to invest in them.
Your capital is at risk. Other fees apply.
How to Get Paid Dividends with eToro
The first question to address is how dividends are paid on eToro. The answer is that it depends on your circumstances. You can trade stocks, ETFs, and indices, all of which pay dividends. If you hold a buy position, you will be paid a dividend into your account. This is a cash transaction.
If you hold a sell position, the value of a dividend payment equal to your position will be deducted from your account. As a result, when it comes to the best dividend stocks, you must carefully consider your position.
Once you’ve decided that you want to trade dividend stocks, you have several options. The first method is to buy individual dividend stocks that pay the highest dividends. For example, you can invest in Apple and receive dividends.
Dividend Stocks on eToro
One of the best way to get paid Dividends with eToro is by investing in the top dividend paying stocks on their platform.
ETFs with a Dividend Focus
If that doesn’t work for you, you can invest in dividend-focused ETFs. If you like to spread your risk, these options can be beneficial. Instead of speculating on a single stock, you cover a group of them. This means that you can trade the best dividend-paying stocks in the United Kingdom through a single ETF.
On eToro, you can trade the following ETFs:
- iShares Core Dividend Growth ETF (DGRO) – this ETF tracks the performance of a US dividend growth stock index.
- Vanguard Dividend Appreciation Index Fund ETF (VIG) – this fund replicates the performance of the NASDAQ US Dividend Achievers Select Index.
- iShares Select Dividend ETF (DVY) – this fund tracks the performance of an index made up of relatively high dividend-paying US stocks.
- iShares Asia Pacific Dividend UCITS ETF (IAPD.L) is a UK-listed ETF that provides exposure to the top 30 dividend-paying stocks in the Asia-Pacific region.
- SPDR S&P US Dividend Aristocrats UCITS ETF (UDVD.L) is a UK-listed ETF that follows the S&P High Yield Dividend Aristocrats Index. This index includes stocks in the S&P Composite 1500 Index that have increased their dividends for at least 20 years in a row.
Smart Portfolios’ Dividend Growth Portfolio
If ETFs aren’t for you, consider our Dividend Growth Portfolio. This feature is available through eToro Smart Portfolios and allows you to replicate the trades of successful investors. Using this feature is an excellent way to build a well-rounded, low-risk investment portfolio. Although there are still risks with this type of trading, it can be a good way to cover the best dividend stocks, especially when combined with ETFs.
Click here to read more about the SmartPortfolio’s on eToro.
Your capital is at risk. Other fees apply.
eToro Stock Trading Platform – Pros And Cons
If you are not sure why you should use eToro and prefer it to other brokers, here we have covered all the best things about the platform that may appeal to you. Additionally, we have also included the list of eToro’s cons you need to consider while using this broker.
eToro Stock Trading Pros
✅ eToro supports thousands of stocks and ETFs listed on such stock exchanges as NASDAQ, NYSE, etc.
✅ Not only US companies but also companies based in Germany, France, the UK, Canada, Spain, and several other countries, are listed on eToro.
✅ The platform is extremely versatile and you can buy multiple other assets along with stocks, including cryptocurrencies, forex, commodities, and indices which are also available through contracts for differences.
✅ The broker offers a competitive pricing structure – you can buy stocks with zero commissions and spreads are below market rates.
✅ eToro supports a social trading platform where users can have discussions with other traders, ask questions to experts and follow the news.
✅ eToro offers social trading tools CopyTrader and CopyPortfolios for free which can be used to mirror the trades of any trader with a click of a button.
✅ The broker is very safe and uses top-notch safety mechanisms to protect your account from fraud and malicious logins.
✅ eToro is a highly regulated platform and is registered with such reputable institutions as ASIC in Australia, CySEC in Cyprus, FCA in the UK, and FinCEN in the United States.
✅ The platform is very beginner-friendly: it has a simple-to-use interface and educational content for newbies.
✅ eToro supports multiple payment methods – credit and debit cards, bank transfers, rapid transfers, Neteller, Skrill, etc.
eToro Stock Trading Cons
❌ The platform is not available in many US states.
❌ Customer service is not excellent.
❌ The broker does not provide too many advanced tools for professional traders.
❌ The charting software is limiting on the platform, however, this can be overcome by using the advanced charting options at Trading View.
eToro – Trade Stocks With 0% Commission
Open an account with eToro, deposit some funds with USD, and finally – trade stocks online from just $10.
FAQs
Where can I trade stocks online?
You can trade stocks from an online broker – of which there are dozens to choose from. For low fees and small account minimums, we like eToro.
What is the best online stock broker?
We reviewed top-rated brokers for 2022 and found that eToro is the overall best place to trade stocks. Not only can you buy and trade US-listed stocks at 0% commission, but thousands of foreign shares too. You need just $10 to get started with an eToro account.
Why is eToro a good platform to trade stocks?
There are several reasons to choose eToro. First and foremost, eToro is a leading platform due to its functionality and safety. Next, eToro supports a wide selection of stocks that are listed on different stock exchanges. Finally, eToro offers cost-effective trading – stocks are available to buy without paying any commissions, and the broker charges only buy and sell spreads.
What’s the minimum deposit required to start trading stocks at eToro?
There is not an exact minimum deposit limit on eToro and the number differs depending on the country and payment method. Basically, it ranges from $50-$1000, and in some countries, you can even start trading with as low a deposit as $10.
Is eToro regulated?
Yes. eToro is one of the safest brokers worldwide and is regulated by several institutions, among them ASIC, FinCEN, CySEC, and FCA.
What else can I trade on eToro’s platform?
eToro offers a versatile trading experience – along with thousands of stocks and ETFs, you can also trade more than 60 cryptocurrencies, the most popular and exotic currency pairs. Commodities and indices are available through contracts for differences.
Your capital is at risk. Other fees apply.
