How Dividends Work

Some publicly traded companies return a portion of their profits to shareholders in the form of dividends. When an underlying stock pays a dividend, the economic benefit is passed through to xStock holders via rebasing.

Dividend eligibility, payment timing, and processing are determined by the issuer and the applicable terms of the product.

What is a dividend?

A dividend is a payment made by a company to its shareholders. Companies may choose to pay dividends on a regular schedule, although not all companies pay dividends.

Dividends are typically paid in cash, but they can also take other forms, such as additional shares.

How are dividends paid?

When an underlying stock pays a dividend, the economic benefit is passed through to xStock holders via rebasing rather than a direct dividend payment.

The amount reflected is based on the dividend declared by the underlying company, subject to applicable taxes, fees, and the product's terms and conditions. The rebasing is applied through participating platforms, and the timing may vary depending on operational processes.

Who is eligible?

To receive the economic benefit, users generally need to hold the xStock before the relevant record date established for the underlying dividend.

Eligibility requirements and payment timelines may differ between platforms. Partners should refer users to the issuer's documentation and their platform's support resources for specific information.

Do all xStocks pay dividends?

No.

Only xStocks representing companies or ETFs that distribute dividends may pass through an economic benefit. If the underlying asset does not pay a dividend, the corresponding xStock will not generate one.