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How do I receive dividends on Stake AUS?

You’re eligible for a dividend if you own a company’s shares through its ex-dividend date. The ex-dividend date occurs one business day before the company’s record date. If you purchase shares on or after the ex-dividend date,  you will not be entitled to the dividend. 

Any dividends you are eligible to receive will be credited directly into your Stake AUD account, usually within 1-2 business days after the payment date. These payments are viewable in the ‘Transactions’ section of the app.

After you create your Stake account, begin purchasing stocks or transfer shares to your new Stake HIN, you may receive correspondence from the share registry on behalf of the company you hold shares advising your bank details have been amended. Be sure to check the amended account details carefully, as these details should match your Stake AUS BSB and Account Number and represent your dividend destination account.

If you would like to nominate an external bank account for your dividends to be received, you will need to contact the respective share registry. A share registry appointed by the company you are holding shares in to manage the payment of dividends, notices of company reports, and shareholder voting.

Information on how to contact the share registry or amend your details can be found in the dividend payment communications you’ll receive from the company. It is usually one of the following registries:

• Automic
• Boardroom
• Computershare
• Link Market Services

You can view all dividend payments in the App by going to More > Funds and Balances, under Transactions. To only view dividend payments, use the filter and select Dividends. On the web, head to Menu > Funds & Balances > Transactions.

How do I receive dividends on Stake Wall St?

You’re eligible for a dividend if you own a company’s shares through its ex-divdend date (including fractional shares). The ex-dividend date of a stock is the day on which the stock begins trading without the subsequent dividend value. If you purchase shares on or after the ex-dividend date, you will not be entitled to the dividend. 

Any dividends you are eligible to receive will be credited into your Stake USD account, usually within 1-2 business days after the payment date. These payments are viewable in the ‘Transactions’ section of the app.

The dividend amount will be proportional to your holding. For example, if a company pays a dividend of US$10 per share and you hold 1.34 shares in that company, your dividend will be US$13.40 (minus any applicable withholding tax). 

If your fractional share pays a dividend, the dividend payable to your position must be greater than or equal to $0.01 in order to be credited to your account. 

Withholding tax

There is a 30% withholding tax on dividend payments in the U.S. This can be reduced to 15% after the completion of a W-8BEN form on U.S.-domiciled securities, which Stake arranges on your behalf when you make your first deposit on Stake Wall St. You can read more about W-8BEN forms here.

Some companies that pay dividends may have different withholding amounts. You can view all the relevant information by going to More > Funds and Balances, under Transactions.

Please note that due to the complexities involved with tax, we recommend you obtain independent & professional advice which takes into account your own set of facts and circumstances.

Dividend Reinvestment Programs (DRIPs)

At this time, Stake doesn’t offer a dividend reinvestment program. However, thanks to fractional shares, you can manually reinvest your dividend cash payments back into the underlying stock or ETF (minimum trade size US$10). 

How do I track my dividends?

You can view all dividend payments by going to More > Funds and Balances, under Transactions. To view only dividend payments, use the filter and select Dividends. A record of your dividends can also be found in Account > Tax & Documents > Account Statements.

Dividend updates & reversals

Sometimes a dividend rate is adjusted after shareholders have already been paid. This is particularly common with American Depositary Receipts (ADRs), with FX rates or changes in foreign tax rates and regulations (for example, due to a regulatory ruling). 

In these circumstances, we’ll adjust your dividend payment: you’ll see a new payment that reflects the updated amount. In some extreme cases the entire dividend could be reversed, but this is rare.