You need to have purchased the shares before the ex-dividend date. If you buy on or after the ex-dividend date or if you sell the day before it, no dividends will be awarded.
💡 Example
Puma has an ex-dividend date of 23.05.2024. To be eligible for a dividend, you need to have purchased the shares on or before 22.05.2024 and hold them until 23.05.2024. After that, the shares can be sold, and you would still receive the dividend in your account. 💸
When are dividends paid?
For Invest/ISA accounts, dividends are paid on the payment/dividend date.
Can I check the upcoming dividends for a stock or ETF?
Yes. Here is how:
- Select your desired stock or ETF
- Go to Instrument details
- Scroll down to Upcoming events
What if I own fractional shares?
If you hold fractional shares, the dividend will be distributed to your account based on the fraction of owned shares rounded to the nearest penny.
Why did I receive less than the full dividend amount?
Dividends are subject to dividend withholding tax, which may vary depending on multiple factors (e.g. source of income, company's country of domicile, etc). You should check what taxes or other charges may apply to the company you have invested in.
💡 Example
You held 1 share with Allianz (ALV) before its ex-dividend date. Allianz announces a gross dividend payment of € 9.60.
Since Allianz is a German company, the dividend payment is subject to German withholding tax, which is 26.375%. Here's the calculation:
€ 9.60 x 26.375% = € 2.53 total withholding tax
€ 9.60 - € 2.53 = € 7.07 (received dividend)
If you want to learn more about dividend investing, check here or in the video below👇