We do not recommend to invest in any of the dividend coins cited in this post. There is a significant amount of risk involved in such an investment. Some of these projects have a very high chance of failure and might turn out to be a scam. This article is for informational purpose only.
We will categorize dividend coins in 4 different types:
1) Profit sharing coins;
2) Hodling coins;
3) Staking coins;
4) Repurchase & Burn coins.
Profit sharing coins
Profit sharing coins are for investors who are willing to hold the coin to receive the dividend during the payout period. A size of dividend depends on the performance of the exchange/fund/trading bots/entertainment/casino platforms and is divided proportionally to all holders. Some of the dividends are paid in their own coin (the total supply increases) and some are paid in ETH. The price of these coins tend to grow right before the start of the payout period and fall right after the end of it as it is one of the main incentives to hold the coin.
Lykke is an exchange platform which allows LKK holders to be entitled to receive dividends. The company prepares audited annual reports which include balance sheets and are available to the general public (2015, 2016, 2017). Lykke has not paid any dividends to the shareholders yet.
Flyp.me is an exchange platform which shares 50% of their profits with FYP token holders every 3 months. The frequency of payouts can be changed if the majority votes so. The latest payouts: 2018 3Q was 0.001293225986525904 ETH per 1000 FYP tokens, 2018 2Q was 0,000306906925 ETH per 1000 FYP tokens, 2018 1Q was 0,002042878995 ETH per 1000 FYP tokens.
TaaS is a tokenized closed-end fund and its token TAAS represents the right to 50% of TaaS capital gains every quarter. The last quarter TaaS faced a negative investment result and could not pay out the dividend. The largest payout by TaaS was on the 3rd of February, 2018 when they paid out 1.3627 USD per token.
SIFT is a fund that pays 50% of their returns to their token holders as a dividend. In September, 2018 SIFT paid out 0.00069 USD per SIFT token (it is always paid in ETH). SIFT coin has been delisted from all exchanges so, the team started their own platform to trade SIFT called Zapple. There are no fees applied for trading SIFT, but there is a 0.5 SIFT fee for depositing SIFT.
Etheroll is an online casino where 100% of profits generated go to DICE holders. Additionally, token holders have a right to vote and make changes on the platform such as lowering/raising house edge, adding a new game, etc. The payout is paid in ETH every 12 weeks. The total profit in the last quarter was 633 ETH.
Ethbits is a P2P exchange where ETBS are entitled to 40% of its profits. Dividends are paid every quarter into a smart contract.
Peerplays is a gaming platform which collects a small fee and PPY holders receive the profit payout every 30 days in the cryptocurrencies that is collected. It is important to hold PPY in your Peerplays Core Wallet if you want to receive the dividends.
Burst uses proof-of-capacity system. Or you can invest in BURST and receive dividends (profit share).
Smart cash award holders as well. You have to hold at least 1 000 SmartCash and you will get paid on the 25th day of each month. The reward comes from 15% block rewards allocation and split proportionally between all addresses.
Komodo pays 0.417% montly rewards (5% a year) if the user holds at least 10 KMD in any Komodo wallet.
Proof of Stake concept allows holders to mine of validate the blocks by consuming a lot less electricity than Proof of Work does. In some cases your wallet can be offline and still stake. The reward depends on the amount of coins you own and the number of stakers there are. This concept allows rich get richer for sure.
ARK has a delegate proof of stake consensus. In order to receive the award, you have to vote for the delegate. If you delegate is in TOP51 then you will receive the profit share based on your delegate requirements. The more ARK you hold the more your vote weights. On average you will receive around 12% a year.
NAV allows users to stake and receive the reward. Users receive a fixed 5% a year on the amount in their wallet. To do so you have to install the NAV coin core wallet and transfer your NAV coins to this wallet. Once the transfer is completed you go to the settings and unlock your wallet for staking to start.
Neblio generates new tokens at a rate that is variable depending on the number of tokens currently being staked on the network. Your chances to stake successfully increases with the amount of tokens being staked and the time-frame. The staking period is minimum 24 hours and maximum 7 days. The reward on average is 10% a year. The wallet has to be online for staking.
Heat node offers its holders two ways to receive the reward: 1) participate in a proof-of-stake or 2) participate in proof-of-presence. The say you have to have a moderate amount of HEAT to run a block generating node. The reward is around 2% a month.
Rise is an ecosystem for developers and businesses. The reward system is the same as ARK‘s, the delegate proof of stake (DPoS) just instead of 51 delegates they have 101. On average you can receive around 10% a year until July 19th 2019.
Steem is not a proof-of stake platform, but a media platform where all content creators get rewarded with 50:50 Steem Power and Steem Dollar or 100% Steam Power. Steam Power lets you vote so, the more you have the more your vote weights, overall the more weight in the network. While Steem Dollar you can cash out to Steem or hold an receive 10% interest annually on it.
QTUM is a proof of stake smart contract platform. The amount you receive depends on this formula P =720 * (your weight) / (network weight) (or you can just check it on QTUM staking calculator). Coins have to get 500 confirmations (which is around 20.8 hours) to become matured enough to stake.
XSN (formerly POSW) has a proof-of-stake and trustless proof of stake consensus, in both cases the reward is paid out in XSN. Stakers receive around 45% of the block rewards for running their nodes.
Stratis also allows users to stake and receive a 1.46% reward a year.
PIVX staking process involves a lot of randomness and for every 10 000 PIVX pays the reward approximately every 30 days. According to PIVX the reward for staking was around 4.8% during May 2017 and April 2018 period. To see up to date results check their reward calculator.
Okcash is a similar case even though it promises only 5% a year. The wallet has to be online to stake.
Decred allows stakers to vote. This prevents unfavorable mining behavior such as mining empty blocks. The total ticket price is Ticket Price + Ticket Fee (where Ticket Price is calculated every 144 block and the ticket fee is DCR per KB of the transaction). You can speed up your ticket to get mined by paying a higher fee. Once it is mined the ticket has to wait to get matured (it lasts for 256 blocks) and be put in the lottery pool. Your ticket in the lottery gets picked in approx. 28 days. There is a 0.5% chance that your ticket will not be picked and will expire.The reward is equivalent to the ticket price + subsidy – ticket fee.
Horizen (formerly Zencash) rewards its users for running secure and super nodes.
Repurchase and burn mechanism
Many projects after the securities act started to shift from dividend paying platform to repurchase an burn mechanism. This not only increase the liquidity and the value of the coin, but also decrease the total supply permanently.
Maker DAO is a debt system platform which is planning to repurchase and burnt the tokens over time. Stability fee is paid by every CDP. It is denominated in Dai, but can be paid only in MKR token. When it is paid MKR is burned permanently.