Overview
A dividend is a distribution of a company’s profits to its shareholders. Dividends typically get paid out on a regular basis. Our self-directed investing accounts support dividend stocks as long as they meet our eligibility criteria.
You will receive dividends in the cash balance of the self-directed investing account where you hold the stock. They're paid in the same currency as the account (USD or CAD).
Dividend payment eligibility dates
The two important dates to pay attention to for dividend payment eligibility are the Record Date and Pay Date:
- The Record Date is the day the company checks its records to identify its shareholders
- The Pay Date is the day the company pays out the dividend to its shareholders
To qualify for the dividend payment, shares you purchase must settle in your account before or on the Record Date. Since all orders take 1 business day to settle, make sure you buy any shares 1-2 business days before the Record Date.
Frequently asked questions
How are dividend payments calculated for fractional shares?
Dividends distributed from fractional shares are proportionate to the fractional amount that you own.
For example, if you own 0.267 shares in stock XYZ and the dividend amount is $1.00, you can expect to receive $0.27 in dividends.
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