Dividends are a share of a company's profits paid out to its shareholders. Many US stocks and ETFs available on UTEX—Margin pay dividends on a regular basis.
On UTEX—Margin, dividends are settled automatically. You don't need to apply for them or take any action.
How dividends are credited
If you hold a long position in a stock before the ex-dividend date, the dividend amount is automatically credited to your account.
A 30% tax is withheld from the payout. This is a US withholding tax.
For example, a company pays a dividend of $1.00 per share. You hold 50 shares in a long position. Your account will be credited: 50 × $1.00 × 70% = $35.00.
What happens in short positions?
If you held a short position in a stock at the time of the dividend record date, the full dividend amount is debited from your account. This is standard practice: since you've effectively borrowed shares, you owe the dividend to the lender.
For example, a company pays a dividend of $1.00 per share. You hold 50 shares in a short position. Your account will be debited: 50 × $1.00 = $50.00.
⚠️ Keep this in mind when holding short positions in dividend-paying stocks.
Where to see dividend operations
Dividend settlements appear in your Balance report in your personal account. Each entry shows the stock ticker, the amount credited or debited, and the date.