How do fractional dividends work?

With Loved you can be a fraction of a stock. 

That stock may pay a dividend that you are entitled to receive because you are a shareholder of the company - it doesn't matter if you own $1 of the company, or the whole company, your rights as a shareholder are to receive dividends reflecting your share ownership.

Example 

Stock ABC has a market price of $1,000 and pays a $10 annual dividend. You buy $100 of Stock ABC and because you own 0.1 shares you are entitled to dividends of 0.1 x $10 = $1 per year.