Articles on: Trading

Stock Dividends on Morpher

Many major companies pay out dividends for investors holding their stocks over a certain time period. This can be a source of revenue for investors, and can be an effective way to entice traders to invest and hold these stocks. Below you will see how stock dividends are handled on the Morpher platform (as of December 2025).

FAQ - Does Morpher pay stock dividends?

No, the Morpher platform does not pay out stock dividends. All of our markets are Virtual Markets, they mirror the price of the real-world market, but the underlying asset is not being held.

Why Stock Dividends Require Price Adjustments

Everything you trade on Morpher is powered by virtual markets, synthetic, on-chain markets that mirror the real-world price movements of assets like NVIDIA or Tesla. There are no middlemen, enabling amazing trading features, but also no underlying asset being held. As a result, we do not receive the dividend payments that are made to shareholders.

On the major exchanges, stock prices tick down when a dividend is paid out. This helps adjust for the actual dividend payment. This is why a price adjustment is required on Morpher. When a dividend is paid out, we pause the market and update the stock price to reflect the price difference from the dividend. This ensures that users who are long or short - do not see a price drop and their returns are not impacted.

The resulting price movement, from a dividend payout, is typically quite small. Nonetheless, sometimes dividends can reflect 10% of a stock price or even higher. This is why it's critical to make price adjustments to our markets.

How Stock Dividends are Processed

Like with stock splits, dividends are one of the few events that require manual processing by protocol administrators. The volatility introduced around the ex-dividend date also requires manual review to ensure correct price updates.

This results in the market being paused around the time of the ex-dividend date. Typically, the manual adjustment follows this flow:

Market is paused 3 days before the ex-dividend date
Prices are adjusted and market data is updated
Market is unpaused and resumes trading 3 days after the ex-dividend date.

Please note, this procedure follows market business days, which do not include Saturday or Sunday. Your position may be paused up to a week around the ex-dividend date of a stock.

The market is not available for trading during stock dividend adjustments. If you have an existing position, you cannot exit the position until the adjustment is made and confirmed in the 3 days afterwards. We are working on helpful UI tips so you are always aware of stocks with upcoming dividend adjustments.

The ex-dividend date is publicly announced by the company paying out the dividend ahead of time. This is the day the stock price undergoes a downward adjustment to reflect the dividend payment. The ex-dividend date is the last day after which investors are able to receive the dividend for holding the stock.

Updated on: 10/12/2025

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