Dividends

Dividends

Most ETFs pay out dividends if the underlying securities within the fund pay out dividends. Please refer to the key facts of a fund to see if a fund is distributing or accumulating.

Traditionally, newer companies or companies experiencing a period of growth do not pay out dividends, as they tend to reinvest the majority of their profits back into the company. It is the more established companies that tend to distribute dividends, however there is no guarantee that this is the case.

ETF investors are entitled to receive any dividend distributions from their fund, less fees and expenses. Dividends are paid out at least once a year but can be more frequent. Most fixed-income ETFs pay out dividends at least monthly. iShares provides an online dividend calendar, which lets you know the dividend payment dates for our range of funds.

ETFs are purchased through a broker. Consquently, how investors receive distributions (cash or reinvested back into the fund) is determined by their agreement with their broker/dealer.

In the UK, dividends are taxed at 10% (for basic rate taxpayers) and 32.5% (for higher rate taxpayers).