What are dividends, and will I receive them?
A dividend is a reward paid to shareholders for their investment in the company, and it usually originates from the company's net profits. When a company chooses to pay a dividend, they are choosing to distribute a company’s earnings to its shareholders. The company will determine a certain amount of money to be distributed per share, so the amount that you ultimately get will depend on how many shares you have (or fractions of a share).
We do have many shares that historically pay out dividends. You can browse them on our stocks & shares page.
Please note that while a company has paid dividends in the past, this may not be the case in future. Numerous factors can influence a company's decision to distribute dividends. This is something beyond Wombat’s control.
If you are invested in a company that chooses to pay dividends, the dividends will be added to your account in one of two ways: either paid out to your Wombat cash account, or if it’s an accumulation dividend, profits from the stock’s gains will be reinvested into the stock (increasing their value, as opposed to being paid out in cash).
As of 6th April 2024, the tax-free allowance for dividends is £500.