How do dividends work on Robinhood stock tokens?
Dividends are reinvested into the token by increasing uiMultiplier(), not paid out as cash. Your raw balance is unchanged; each token simply represents slightly more of the underlying share afterwards.
This means a stock token tracks the total return of its underlying rather than its price return. Any performance figure computed from price change alone understates the return on every dividend-paying instrument, and the error compounds over time.
Robinhood's /corporate-actions endpoint reports CASH_DIVIDEND with a rate in USD per share and STOCK_DIVIDEND with a rate in shares per share. The multiplier change is applied at the processDate.
For reporting, price return and total return should be presented separately, with the dividend contribution broken out. Conflating them is the most common way tokenized-equity performance gets misstated.