If you have shares of a company when the company issues dividends. The company first send the money to the brokers.
Then you just receive the money from your broker?
A Basic Question - How Do You Receive Share Dividends?
Comments
No cheques these day
It's the commonly known name for it, regardless if we don't deal with paper cheques anymore.
No, it's a direct deposit and that's what people call it
@brad1-8tsi: https://www.linkmarketservices.com.au/corporate/resources/fa…
Dividend cheques are still a thing and what they're referred to, even if direct deposits are more common and recommended.
Future payments (and in some cases, the outstanding payment) may be banked directly into your Australian bank, building society or credit union account. Not only is payment by direct credit much more secure, it's faster - payments are credited to your account as cleared funds, allowing you to access them on payment date.
That was the old way, you can't get cheques anymore
Not true - if your share registry does not have your banking details they will mail you a cheque.
Not anymore
@deme: I actually registered on ComputerShare today. Cheque payment was the default option. I then updated payment options with my banking details.
Through bank account, after entering details in Computershare or whoever the company uses.
Companies or ETFs have expected dates on when they issue dividend. Thus check that particular company or just check for dividend history for dates.
When you buy the shares the share registry for that company will send a snail mail asking for Tax file number, bank details and communications preferences (snail mail or email).
You can fill out the hard copy or go online and do so.
When a dividend is declared there will be a payment date (look in ASX announcements). The money goes straight into your account and you receive an email link to the registry for the dividend statement that you need for tax as it is income.
Your broker is purely for buying and selling shares
What if I do not tell them my ax file number?
They held half of the dividend, similar with bank interest.
What if I do not tell them my ax file number?
They retain tax at the highest marginal rate (~45%). When you do your tax they refund the difference between that and your marginal tax rate.
It's easier to supply your TFN as then the shares are linked to the ATO and the tax information is automatically uploaded to your tax return (which should be checked for accuracy)
You get 1 cent per share in divs instead of 0.50 cents per share.
It's totally worth it.
Depends on what you tick, either money into your bank account or trading account, new shares etc
In many ways, as mentioned by others above.
Your broker may have also set up a 'reinvestment' option.
Or, if they are acting on your behalf and using a platform that sends div's to the 'cash account' held with that platform, then they might be still sitting in there.I manage my own and have a few grand I need to move out of the 'cash account' into my usual banking transaction account to use.
In a bundle of $1 USD bills.
EFT or DRP
Side note, dividends are for suckers (and old people who don't have a normal income). Do some reading, much better off (long term) if your stock doesn't pay outwards and reinvests in itself.
you guys get dividends?
Businesses that can't innovate pay divs.
Businesses that innovate spend their profits on R&D.
Another day, another person gets confused with broker and share registery.
While you at it, declare your TFN or you will find "half" is gone to tax.
The dumbing down of society. At least he is asking questions now. Kind of like the banker post the other day, that never even heard of progressive tax rates. Imagine the intelligence of the person that is hiring them?! lol
The question people should be asking is "why am I buying overvalued divs stonks that go down to the right and not tech stonks or assets that don't pay divs but go up to the right?"
It is not so much dumbing down of society, but we are expected to know how shit work from day one.
Fact is when we buy shares, we get letter to fill in payment, voting and communication preference instruction, but they don't explain how processes like dividend payment works. You literally have to Google to find an explanation, which doesn't even mention once the role broker or share registery plays.
And so, OP is yet another person who got confused with the role the broker has with dividend payment.
People shouldn't invest in assets they don't understand. They spend more time watching iPhones, cars and cat vids than watching investing vids.
Take the time to read, paper trade and use demo accounts before putting any money on market.
How Do You Receive Share Dividends?
Cash in hand.
A dividend cheque or additional shares of stock is issued to them.
You will be paid into your bank account.
You should confirm with your broker directly (or read the FAQ/Terms).