What is the difference between a dividend and an interest/coupon payment?

Modified on Thu, 12 Feb at 1:37 PM

Dividends (for shares/ETFs that pay them)
A dividend is a cash payment from a company or fund to its shareholders. Not every share or ETF pays dividends, and amounts/dates can change. When a dividend is due, we credit your account after we receive the funds from the paying agent. Your remittance/statement will show the gross amount, any tax withheld at source (this can vary by market/issuer), and the net amount you receive.


Interest or “coupon” (for bonds/ bond ETFs)
Bonds pay interest, often called a coupon. It’s the periodic interest based on the bond’s terms, usually paid once or twice a year until maturity. When an interest payment is due, we post it to your account once received. For bond income, Moneybase offers an option to deduct 15% final withholding tax and report on your behalf (where applicable). You can change this setting in your account.

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