I'm wondering if ETFs, or Exchange Traded Funds, provide dividends to their investors. I'm curious about this because I'm considering investing in ETFs and want to understand if they offer dividend payments as part of their returns.
5 answers
CryptoWarrior
Wed Dec 18 2024
ETFs distribute dividends generated from the stocks they hold.
CryptoGuru
Wed Dec 18 2024
When an ETF receives dividends from the stocks in its portfolio, it is obligated to pass these earnings to its investors.
Filippo
Wed Dec 18 2024
Investors can receive these dividends in the form of cash payments or additional shares of the ETF.
Martino
Tue Dec 17 2024
The taxation of these dividends depends on various factors.
JejuJoy
Tue Dec 17 2024
Sometimes, dividends may be taxed at the long-term capital gains rate, which is generally lower than the ordinary income tax rate.