What Are Dividends?

Dividends are payments made by companies to their shareholders, typically representing a portion of the company's profits. When you own stocks or ETFs that pay dividends in your dub portfolio, you'll receive these payments automatically.

Key Dividend Dates

Understanding the dividend timeline is important for investors. Here are the four critical dates in the dividend process:

1. Declaration Date

• The date when a company's board of directors announces its intention to pay a dividend
• The announcement includes the dividend amount, ex-dividend date, record date, and payment date
• This is when the dividend becomes an official liability for the company

2. Ex-Dividend Date

• The cutoff date for dividend eligibility
• If you buy a stock on or after this date, you will NOT receive the upcoming dividend
• If you own the stock before this date, you will receive the dividend even if you sell it on or after the ex-dividend date
• This is the most important date for investors to understand

3. Record Date

• Usually 1 business day after the ex-dividend date
• The date when the company checks its records to determine who will receive dividends
• Shareholders must be listed in the company's books on this date to receive the dividend

4. Payment Date

• The date when dividends are actually distributed to eligible shareholders
• This can be several weeks after the record date
• On dub, dividends are credited to your account as cash on this date
  
  

How Dividends Are Processed on dub

Dividend Payment

When you own dividend-paying securities in your dub portfolio:

• Dividends are automatically credited to your account on the payment date
• The dividend amount is based on the number of shares you owned on the record date
• All dividends are received as cash and appear in your available buying power
• No action is required on your part to receive these payments

Dividend Settlement

Once dividends are paid:

• They typically settle on the payment date
• Settled dividends are immediately available for:
  • Reinvestment into portfolios
  • Withdrawal to your linked bank account
  • Use as buying power for new investments
    
    

Dividends in Copied Portfolios

If you're copying a portfolio on dub:

• Dividends from the underlying holdings will be credited to your account as cash
• They are NOT automatically reinvested back into the portfolio
• The portfolio creator's dividend reinvestment choices do not affect your dividend payments
• You have full control over how to use your dividend payments
  
  

Special Situations

Account Closure After Ex-Dividend Date

If you:

• Own a stock by the ex-dividend date
• Then sell the stock or close your account before the payment date

You will still receive the dividend payment. dub will ensure the dividend is properly credited to you, typically by sending it to your linked bank account.

Stock Sales After Ex-Dividend Date

If you sell a stock after the ex-dividend date but before the payment date, you'll still receive the dividend when it's distributed on the payment date.