I wanted to note this here as I was asked a few times about this. This is one of the reasons I am using Trading212.

In short, yes, Trading 212 pays dividends. To receive dividends, you must purchase dividend-paying stocks. Dividends are payments made by a company to its shareholders. They are typically paid out quarterly and can be used to supplement your income or reinvested back into the company or any other stock. Trading 212 offers a platform where you can buy and sell dividend-paying stocks.

What about DRIP?

DRIP is a strategy where you reinvest your dividends. This means that the dividend payments you receive from your dividend-paying stocks will be used to purchase more shares of the stock. This can be a great way to grow your portfolio over time. Trading 212 offers a platform where you can buy and sell dividend-paying stocks, including those that offer DRIP programs.

Fractional Shares

Fractional shares are a great way to get started with dividend reinvestment. A fractional share is a share of a company that is less than one full share. This means that you can purchase a fractional share of a dividend-paying stock, even if you do not have enough money to purchase a full share. Trading 212 offers a platform where you can buy and sell dividend-paying stocks, including those that offer fractional shares.

What about pie investing?

As mentioned in another post, pie investing is a great way to keep your investments in groups.

Also, I love to experiment with pie investing. For instance, I have many pies. Some of these have up to 50 stocks. Especially, I have a dividend pie where I aim to collect dividends almost every day. I will write about this pie in a different post.

Single Stock Pies

Another pie structure I use is the single stock pie strategy. One of the main reasons I have been experimenting with this structure is that it allows me to use DRIP easier.

For instance, I have a pie for only Coca-Cola (KO) where I have enabled auto-invest, meaning every time KO pays dividends the pay buys stocks for me automatically. As Trading212 supports fractional shares it makes my life easier to reinvest. Some would argue this would take away the opportunity to check and buy the stocks when they are low enough. If you think the same way check my article here https://trading212tracker.co.uk/posts/go-for-dollar-cost-averaging

Remember, my bigger pies where I had 50 stocks. So, to be able to invest I need a minimum of £50 so it runs. This is fine but then I need to wait to build enough budget to reinvest.

Therefore, I really like to keep monthly dividend-paying stocks as a separate pie. Each month I get paid and buy more stocks without even thinking about it.

When it comes to dividend reinvestment, many people prefer the ease and convenience of using a platform like Trading 212. This platform allows you to buy and sell dividend-paying stocks, including those that offer dividend reinvestment programs (DRIPs). With fractional shares, you can purchase a fractional share of a dividend-paying stock, even if you do not have enough money to purchase a full share. Trading 212 also offers a platform where you can buy and sell single stock pies. These pies allow you to group your investments into manageable chunks. This can be helpful for those who want to keep their investments in different areas or who want to experiment with different investment strategies.

There you go, now you know that Trading212 pays dividends and it also supports fractional shares. In addition, you know about DRIP investing and how you can utilize Trading212 pies to automate your reinvestment.