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5.10% AER (variable tracker)
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What are dividends?

Learn about earning a passive income on your investments

Earn passive income on your investments

Dividend payments are distributions of a company's profits to its shareholders, typically paid out regularly, often quarterly or annually. These payments are a way for companies to share their financial success with investors and provide them with a return on their investment.

Dividends are usually paid as cash, but they can also be issued as additional shares of stock. The amount of dividend payment each shareholder receives is typically proportional to the number of shares they own.

Companies can pay dividends to demonstrate profitability and a commitment to returning value to shareholders. However, not all companies do so, especially those in high-growth industries that reinvest profits back into the business, as they may see further expansion and innovation as more important.

Dividends can provide a steady stream of passive income as cash, or if reinvested, enable investors to compound their returns by buying more shares to generate more potential income going forward. At Chip, the following funds pay out dividends. These will be paid out to you as uninvested cash which you can choose to reinvest or withdraw as you wish.

  • Clean Energy ETF
  • S&P 500 ETF
  • US Bond ETF
  • LifeStrategy - 80%
  • LifeStrategy - 60%
  • LifeStrategy - 40%


The value of investments can fall as well as rise and you could get back less than you put in.You can earn dividends tax-free up to certain limits but please check your personal allowances. Please note that Chip does not provide tax advice. Tax treatment depends on individual circumstances and may be subject to change in the future.