Dividend Payments and Withholding Tax on Invest.MT5 Accounts

Modified on Wed, 12 Feb at 6:36 PM

What is a Dividend?

A dividend is the distribution of a company's profits to its shareholders. Companies typically pay dividends quarterly, though some may pay monthly, semi-annually, or annually. While most dividends are paid in cash, some companies might offer stock dividends instead.

For example, if a company declares a dividend of $0.80 per share and you hold 50 shares, you would be entitled to receive $40 in dividends.

Understanding Dividend Dates

The dividend distribution process involves four key dates:

Declaration date - When the company announces the dividend amount and schedule.

Ex-dividend date - The first day the stock trades without the dividend included
You must hold the shares before this date to receive the dividend.
While companies typically pay dividends on the payment date, Admirals may credit dividends on the ex-dividend date.

Record date - When the company checks its shareholder records (one business day after ex-dividend date).

Payment date - When dividends are officially distributed (typically 2-4 weeks after record date).

How Dividends Appear on Your Invest.MT5 Account

When you receive dividends, two related transactions will appear in your Invest.MT5 account:

The full dividend amount (before tax deduction)
Example: "30 USD ... Adj: ex-div AAPL #95165967"

The withholding tax deduction
Example: "-4.5 USD ... Adj: withholding tax #95165967"

Your actual dividend payment will be the difference between these two amounts.
In this example, you would receive 25.50 USD (30 USD - 4.5 USD tax).

Common Withholding Tax Rates

For stocks, the withholding tax rate depends on the country where the company is registered, not where its shares are traded.

For ETFs, the tax rate is based on where the ETF itself is domiciled.

Admirals applies non-treaty tax rates that vary by country, except for US stocks where a 15% withholding tax rate is used.