A dividend is a distribution of a company’s profits to its shareholders, that typically gets paid out on a regular basis. Wealthsimple Trade supports dividend stocks as long as they meet our eligibility criteria.
Dividend payment eligibility
The two important dates to pay attention to with looking at dividend payment eligibility are the Record Date and Pay Date
- The Record Date is the day on that the company checks its records to identify its shareholders
- The Pay Date is the day the dividend is paid out to shareholders
To qualify for the dividend payment, shares you purchase must settle in your account before or on the record date. All orders take two business days to be settled.
It is best practice to purchase any shares 2-3 business days prior to the record date to ensure you are eligible for the dividend.
View your recent dividend payments
Dividends are paid directly to your cash balance in Canadian Dollars. To view your recent dividend payments, follow these steps:
- Log in to your Trade mobile app
- Select the Profile icon in the top left-hand corner
- Choose the Activity menu item
- Select Filter in the top left-hand corner
- Scroll down to Activity Type and choose the Dividends menu item
- Select Done and you will see all of your dividend payments, along with when you received them, and the amount earned
- All cash dividends are paid out on their payment date. However, there can be delays in Wealthsimple receiving the proceeds from our clearing broker, CDS. This can result in delays to the cash getting deposited into your account.
- Dividends paid out by US corporations do not incur a currency conversion fee, however, they do have a 15% non-resident withholding tax deducted if they are paid out in a TFSA or Personal account.
Dividend Reinvestment Programs (DRIP)
Dividend reinvestment programs are not currently supported on Wealthsimple Trade.