What are dividends?
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Written by Sadie Cash
Updated over a week ago

Some companies pay a portion of their profits to their shareholders, usually a couple of times a year, and these payments are called dividends. If you invest in a company which pays dividends, youโ€™ll see them boosting the cash balance of your account every so often. ๐Ÿ’ธ If a company is performing well, they may pay a bigger dividend to their shareholders. But if a company is up against it, they may reduce or cancel their dividend altogether.

If you have dividends paid to you in a foreign currency (from a US investment, for example), they will need to be converted to pounds before they can be paid into your Dodl account. There is a 0.5% foreign exchange charge to do this.

You may choose to reinvest your dividends, withdraw them (if you can) or use them to help cover your Dodl charges when they're due.her.

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