Dividend stocks can be a great addition to your portfolio if you’re looking to invest in companies that allow you to combine passive income with steady growth.

In this guide, we show you how to buy dividend stocks in a matter of minutes with a commission-free trading site that requires a minimum deposit of just $10.

How to Buy Dividend Stocks – 5 Easy Steps

A quickfire guide on how to buy dividend stocks with eToro can be found below.

The eToro website not only offers thousands of commission-free stocks – but it takes just five minutes to set up an account.

  • ✅Step 1 – Open an Account With eToroEnter your personal information and contact details to register a trading account with eToro.
  • 🛂Step 2 – Upload ID: Next, upload a clear copy of your government-issued ID and a proof of address – such as a recently issued bank statement or utility bill.
  • 💳Step 3 – Deposit Funds: Just $10 is required for US-based clients to fund their eToro account. Supported deposit methods are inclusive of debit and credit cards, e-wallets, and bank wires – and no fees are charged on USD payments.
  • 🔎Step 4 – Search for Dividend Stocks: You can fast-track the investment process by searching for the dividend stocks that you want to add to your eToro investment portfolio. To proceed, click on the ‘Trade’ button.
  • 🛒Step 5 – Buy Dividend Stocks: You will need to stipulate your investment stake in the ‘Amount’ box from $10 or more. To buy your chosen dividend stock right now – click on the ‘Open Trade’ button.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

It really is as simple as that to buy dividend stocks when using the eToro website.

Read on for a more detailed beginner’s walkthrough of how to invest in dividend stocks.

Best Brokers to Buy Dividend Stocks

When deciding on where to buy stocks online for the purpose of acquiring dividend-paying shares, you’ll need to ensure that the broker stipulates suitable minimum account balance requirements and that it offers low trading fees.

We also prefer brokers that allow you to invest in stocks with just a few dollars – as this will enable you to diversify across many different companies without breaking the bank.

For a quick rundown on where to buy dividend stocks today – consider the brokers reviewed below.

1. eToro – Overall Best Place to Buy Dividend Stocks for 2022

If you’re looking for a low-cost broker that supports small minimum deposits and stakes across thousands of stocks – then eToro is the overall clear winner. At this broker, you can open an account online or via the eToro app for iOS and Android in a matter of minutes. 

US clients are treated to fee-free deposits across PayPal, debit/credit cards, bank wires, and a number of other supported e-wallets. This means that you can buy stocks with PayPal on eToro with competitive fees. Plus, you only need to deposit $10 or more to get started as a US client. This means investors can buy fractional shares of Samsung stock with an eToro trading account. When your eToro account has been funded you can then proceed to buy dividend stocks at 0% commission and tight spreads.

In terms of supported markets, you will find all dividend aristocrats and kings listed on the NASDAQ and NYSE. Additionally, eToro supports nearly 20 international markets based in Europe, Asia, North America, and more. When you buy international dividend stocks on the eToro website – you will still avoid the need to pay any trading commissions. eToro is a great option if you’re looking to build a diversified investment portfolio as you’ll have access to a plethora of equities from the best NFT stocks and cannabis stocks, to the most undervalued stocks on the market.

etoro review stock trading

What we also like about eToro is that you can invest in a basket of dividend stocks via a single trade. In fact, this can be achieved in two different ways. First, you might consider investing $10 or more into a dividend stock ETF. At eToro, this is inclusive of the popular iShares Core Dividend Growth ETF and even the SPDR S&P US Dividend Aristocrats ETF.

All dividend ETFs at eToro can be traded without paying any commission and the minimum stake is also $10. The second option that you have is to invest in dividend stocks passively or to consider a smart portfolio. One of the best options here is the DividendGrowth portfolio – which focuses on stocks that have increased their annual dividend payment for at least 20 years.

Crucially, smart portfolios are managed on your behalf – which means that your basket of dividend stocks will be regularly rebalanced and reweighted based on broader economic indicators. We should also mention the copy trading tool at eToro – which offers access to thousands of verified investors.

etoro review

Put simply, this enables you to select a stock trader that aligns with your financial goals and then automatically copies all ongoing and future investments. Outside of its stock and ETF trading department, eToro also allows you to buy cryptocurrency. This covers dozens of leading digital assets – which is inclusive of metaverse crypto tokens and DeFi coins.

Minimum Deposit $10
Fractional Shares? Yes – $10 minimum
Pricing System 0% commission on all dividend stocks and ETFs
Cost of Buying Dividend Stocks Spread only

What We Like

  • Overall best broker to buy dividend stocks
  • Thousands of US and international stocks listed
  • 0% commission on all dividend stocks and ETFs
  • Minimum deposit and stock trade is just $10
  • Best demo stock trading accounts on the market
  • Copy trading and smart portfolios
  • No fees on USD deposits
  • Buy stocks on eToro with competitive fees

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

2. Webull – Buy US-Listed Dividend Stocks From Just $5 

webull logoIf you’re looking to buy the best dividend stocks from the US markets, then there is every chance that you will find your chosen equities at Webull. In total, this top-rated and user-friendly trading platform gives you access to over 5,000 US-listed stocks and ETFs across the NYSE and NASDAQ.

And, you can easily create a diversified portfolio of dividend stocks – as Webull supports fractional shares. The minimum stake per stock trade that you can execute is just $5. This means that a small deposit of $50 would allow you to diversify across 10 different dividend stocks.

webull platform screenshot

Just like eToro, Webull also gives you access to a wide number of dividend stock ETFs. The key issue is that you cannot directly access international exchanges. As such, the only option you have to buy foreign-based dividend stocks is via an ADR – which is arguably worth avoiding.

Nonetheless, Webull also offers support for stock options and a good selection of crypto assets. The latter can be traded from just $1. When it comes to fees, ACH deposits and withdrawals attract no transaction charges. You can also trade any asset supported on the Webull platform – including that of dividend stocks, without paying any commission.

Read More: If you can’t make your mind up about which brokerage site is right for your needs, check out our eToro vs Webull comparison.  

Minimum Deposit $0
Fractional Shares? Yes – $5 minimum
Pricing System 0% commission on all dividend stocks, ETFs, and options
Cost of Buying Dividend Stocks Spread only

What We Like

  • No minimum deposit
  • Great for buying US-listed stocks
  • Access to margin trading tools
  • Ideal for all investor profiles

Your capital is at risk.

How to Buy Dividend Stocks with eToro – Tutorial

Even if you have never traded equities online before, the process of investing in dividend stocks is simple and fast. In fact, by following the beginner-friendly guide below – you will learn how to buy dividend stocks in under five minutes from start to finish.

This tutorial shows you the required steps with the overall best broker to buy dividend stocks – eToro. This is because eToro offers thousands of stocks and ETFs at 0% commission and the platform is very easy to navigate.

Step 1: Open an eToro Stock Broker Account 

Opening a trading account with eToro is a simple procedure that will initially require you to click on the ‘Join Now’ button. You will then see a registration form that will ask you to choose a username and a password.

In addition to entering your email address, read and accept the broker’s terms and conditions before clicking on the ‘Create Account’ button.

etoro review

On the next page, you will need to enter some basic personal information. This is inclusive of your name, nationality, social security number, date of birth, and residency status.

Make sure that you enter the required information correctly – as you will be asked to verify this in the next step with some ID.

Step 2: Upload ID

If you have the correct documents to hand, the KYC process at eToro can be completed in less than two minutes.

Buy Dividend Stocks with eToro

You will need two documents to proceed:

  • Proof of residency, which can be a bank statement or utility bill issued within the prior three months (other documents are accepted)
  • Proof of identity, which can be a state ID, driver’s license, or passport

Regarding your ID, make sure that the document is still valid.

Step 3: Deposit Funds

Before you can buy dividend stocks at eToro you will need to make a deposit. The minimum deposit requirement for US clients is a very affordable $10.

buy dogecoin at etoro

The fastest payment method to opt for – should you wish to buy dividend stocks instantly, is a credit or debit card. E-wallets like Paypal are generally processed without delay too.

However, if you opt for ACH or a domestic bank wire, then do note that you might need to wait 1-3 working days for the cash to arrive.

Nonetheless, if you are depositing US dollars into your eToro trading account, no fees are charged.

Step 4: Search for Dividend Stocks

eToro offers thousands of US and international stocks – so the fastest way to invest in your chosen dividend-paying company is to use the search bar.

As you can see from the below, we are searching for Coca-Cola – which has increased the size of its annual dividend payment for 60 consecutive years.

how to buy dividend stocks at eToro

When you see your chosen dividend stock, click on ‘Trade’.

Note: If you click on the ‘Discover’ button from the left-hand side of the screen, you can browse what dividend stocks eToro lists.

Step 5: Buy Dividend Stocks at 0% Commission 

eToro needs to know how much money you are planning to allocate to your chosen dividend stocks. As this broker supports fractional shares, you only need to risk a maximum of $10 per trade.

how to buy dividend stocks at eToro

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

In our example above, we are looking to buy $50 worth of Coca-Cola stocks. If the markets are currently open, you can click on the ‘Open Trade’ button to place your order immediately.

However, if the markets are currently closed for the day, you will instead need to click on ‘Set Order’. This simply means that the order will be placed when the markets reopen the following day.

And that’s it – you have just learned how to invest in dividend stocks without paying any trading commission.

How to Sell Dividend Stocks?

On the one hand, dividend stocks should always be viewed as long-term investments. After all, for as long as you hold the dividend stock in your portfolio – you will receive a payment every three or six months.

However, there might come a time when you want to sell your dividend stocks to focus your efforts on other assets. If this is the case, the good news is that you can cash out your dividend stock investment instantly when using the eToro website.

After logging in and clicking on the ‘Portfolio’ button, look for the dividend stock that you wish to sell. Next, click on the ‘Cog’ icon and confirm that you want to sell all of your dividend stocks.

When you confirm for the final time, eToro will sell your dividend stocks and add the cash to your balance.

How Much Does it Cost to Buy Dividend Stocks?

When deciding on where to buy dividend stocks, it is important that you check the broker’s fee table before proceeding.

We would suggest looking for the following charges before opening an account with an online broker for the purpose of investing in dividend stocks.

Funding Charges

Some brokers will charge deposit fees on certain payment methods. Oftentimes, this is the case when you wish to fund your account with a domestic bank wire.

At Webull, for instance, this will cost you $8 on each transaction. If you are looking to deposit funds in US dollars and you wish to avoid paying any fees, eToro allows you to do this via a debit/credit card, e-wallet, ACH, and a domestic bank wire.

Commissions

Very few brokers in the US charge commissions these days when you buy dividend stocks that are listed on the NYSE or NASDAQ. Certain conditions might apply, such as Schwab requiring the dividend stock to be listed on the S&P 500.

Nonetheless, we actually prefer eToro when it comes to trading commissions. This is because the broker offers 0% commission across all of its supported dividend stocks – not only those that are US-listed, but overseas too.

Spreads

The spread is typically a hidden fee that you need to research yourself, not least because it refers to the difference between the buy and sell price of your chosen dividend stock.

The spread will vary from one broker to another, so be sure to understand how much you are paying before placing an order.

Conclusion

Dividend stocks offer the perfect combination between steady growth and regular income. In this guide, we explained how to buy dividend stocks for your portfolio in less than five minutes with eToro.

In choosing this broker to buy dividend stocks, you can invest in US and foreign companies from just $10 and without paying any trading commission.

All you need to do to get started right now is open an eToro account and deposit US dollars fee-free – before deciding on which dividend stocks you wish to buy.

etoro review

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

Frequently Asked Questions on Buying Dividend Stocks 

How do I buy dividend stocks?

Where is the best place to invest in dividend stocks?

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