Is Revolut going to keep my dividends?

I’ve just taken a look at the terms and conditions for Revolut Trading and there it says:

No Guarantee of Rights

Whilst Instruments can often have rights to dividends and, in certain instances, the right to vote on certain matters at general meetings of the issuing company, you should not assume that you will be able to exercise these rights. The payment of dividends by a company is not guaranteed and you may not have the opportunity to exercise any voting rights attaching to those Instruments.

What does that mean? That Revolut is going to or can just keep my dividends? And if not, why does this text not clearly state the opposite?

/edit: Thanks to the responses, I can see that this can be read differently than how I did. Nevertheless, I do still think it’s ambiguous and should be fixed.

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I think it means exactly what it states: you’re not guaranteed to receive a dividend.
But not from Revolut, by the company you hold your equity in. There is any number of reasons why a business may not pay out a dividend to its shareholders, - it may not be able to. It may hold some or all of it’s earnings for reinvestment.

Capital invested in equities can be lost as well as grow, remember.

In terms of the holdings themselves, Revolut is only the introducing broker and the holdings are held by others, it’s all detailed in the terms of business. There’s nothing here that looks particularly unusual, to me anyway.

So no, I’m guessing Revolut isn’t going to be stealing your dividends…

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Sorry, but this is not what’s in the text. The text says that the instrument can “have the rights to dividends” but “the payment of dividends (…) is not guaranteed”. This clearly indicates that while the company pays a dividend, i.e. I have the right to a dividend, I’m not payed the dividend. Again, why is Revolut asking me to acknowledge that they will hold back dividends?

IMHO You are misreading the statement. You are not guaranteed to receive a dividend simply because dividends are not guaranteed by nature. Companies decide to distribute or not on assembly general meetings. Companies tend to be consistent in their policies because they know it is for their own benefit; ie if a company had a long history of dividend payments they will try to keep doing it, on the contrary, a growth company which does not pay dividends will most likely reinvest ie not pay a dividend. Revolut is only saying they you will not benefit from your voting rights which is different.

Thanks; still, this ambiguous at best. Of course I know that companies decide whether they pay dividends or not and of course Revolut can’t guarantee that a company.

You’re taking two selective pieces in a paragraph and using them to construe your own misguided take.

Revolut aren’t interested in the dividends you get, they charge you a holding fee to make a profit.

“The payment of dividends by a company is not guaranteed and you may not have the opportunity to exercise any voting rights attaching to those Instruments.”

Legalease to English:

“Companies evaluate if they want to pay a dividend themselves and as such we can’t promise you a dividend from any specific company. We also can’t promise they will allow you to vote on anything”

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We also can’t promise they will allow you to vote on anything

At least here you are definitely wrong; the text clearly and unambiguously states that I might have right to vote which I cannot exercise.

Revolut aren’t interested in the dividends you get, they charge you a holding fee to make a profit.

I don’t really care that much whether or with what they make profit; I’m only interested in whether they have something fair to offer or not.

Legalease to English:

This is your interpretation. The paragraph (and the rest of the text) does not mention that dividends are actually paid to the customer anywhere. The paragraph does not - neither in English nor in “Legalease” - restrict the fact that there is “no guarantee” in any way. In particular, it does not and nowhere restrict this to companies that have chosen not to pay dividends. Thus, this is pure speculation on your end.

In contrast, the paragraph intertwines something Revolut clearly does not offer (the exercising of voting rights) and dividends. The fact that you yourself didn’t understand the former correctly shows how contrived this is. Yes, one can read it as Revolut not warranting the exercising of voting rights whilst the companies not warranting the payment of dividends. However, if Revolut were to withhold my dividends after me accepting this paragraph, I’m not sure any court wouldn’t tell me that I got what I accepted.

People have received their dividends through Revolut already

They don’t withhold them

It would be the company not paying them

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On Revolut you can (as far as I know) have fraction of share. So let’s say You own 1/10 of a share of company Tango price 1usd/share. Your investment is value 10c. Tango company have 1% dividend. So your dividend is 0,1c. But you have to pay tax on the dividend. So with fraction of share you can end up with dividend not being paid even it it’s paid by company.

Revolut should comment on that. This is very serious. It clearly states that while there might be dividends paid or you might in theory have voting rights you MIGHT not be able to execute them. Voting rights are btw given by law to the HOLDER of the stock. But because you are not holder you might be (by this paragraph) striped from those rights. Doesn’t mean you will be and clearly now it’s not the case, but Revolut reserve the rights to do so. Means you do not possess the same guarantees as you have when you buy stocks directly from the broker.

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They are completely standard terms for any share dealing company which holds shares as a nominee.

So no, they aren’t going to steal anything.

Does anybody know any cumulative preferred stocks that can be bought via Revolut? (In order to avoid being taxed on your dividends) Or where can we get an answer to that question?

I tried revolut chat, but they said that they can’t give me “advice” and that some are and some are not.

Could you provide a source reference for your claim that these are standard terms?

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I also confirm that you can get dividends via Revolut.

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did you buy a (or several) full stock/s of AAPL or a certain fraction of it?

I think it was some full stocks and some fraction, however the interface of Revolut is super simplified so I have no idea how it was exactly calculated.

If I calculate my dividend 8.85 / 0.77 = 11.49 so it should be fraction of a divided. I’m not sure how this is calculated and I’m waiting for the first Month Report to see if there is more information.

OK, now i see it must be this. I added what I bought before 8th of Nov and this is what I got 9.93+1.167+0.39 = ~11.48 shares, which is the same as above. So I got a fraction of a dividend.

Hi,

Can you please be clear.
How much did you get?

You shoud have got about 2$ per share?
It was 0.77% dividend and the price was around 260$ so 0.0077 x 260 = 2$

Thank you in advance!

No, there is a 0.77¢ dividend per share. I bought 11.49 shares, so I got $8.85.