When are dividends paid out?

There are 4 important dates to know

When dealing with dividends, there are four important dates you need to know. Knowing the dates below will help you determine whether or not you receive the dividend (long shares) or when you will owe the dividend (short shares).

  1. Stock Record Date
  2. Ex-dividend Date (Ex-date)
  3. Stock Settlement Date
  4. Dividend Payable Date

Due to stock settlement times (T+2), the last day to purchase a stock or exercise a long call(s) to be entitled to the dividend is Monday or the trading day before the ex-date. On the other hand, if you are short a call, then you may owe the dividend if you are assigned short shares before the ex-date (Dividend Risk). The Dividend Payable Date is specified on a date after the Record Date by the underlying company or ETF company.

MondayTuesdayWednesdayThursdayFriday
Last day to buy shares or exercise long call(s) to be eligible for the dividend.Ex-date
When stock trades without the dividend.
Record Date
Owners of the shares are entitled to dividend


Buy Shares1st day of Settlement2nd of Settlement

To learn about Dividend Risk, please click here.


Sections


Long Stock

Getting paid the dividend

Do you hold any stocks that pay a cash dividend? If so, the cash dividend will appear in the History tab as a credit and will post to your account a day after the payable date and reflect in your account's cash balance.



Short Stock

Owing the dividend

Were you assigned short stock or held a short stock position and owe the dividend? If so, the dividend amount will initially list as a pending cash entry when the underlying trades ex-dividend. The owed dividend will appear in the History tab as a debit on the payable date and deduct from your account's cash balance.



DRIP: Dividend Reinvestment Program

How do I enroll my account for DRIP?

Looking to reinvest any dividends with DRIP? Before reaching out to our Trade Desk, your account must have a DRIP eligible security to enroll. We cannot preemptively apply DRIP to your account. To enroll, please contact our Trade Desk (tradedesk@tastyworks.com) after the position(s) settles. We can apply DRIP on a portfolio or position basis.


When DRIP is applied, and a dividend is paid out, the cash dividend will display in your History tab. The reinvested dividend will appear immediately above the cash dividend as a debit, indicating the dividend reinvestment. DRIP must be enabled before the dividend record date to receive dividend reinvestment. There are no additional commissions or fees to enable DRIP.


The current limitation with DRIP on the platform

Currently, any whole or partial shares from a reinvested dividend will not appear on your platform. However, partial shares are visible on our back-end through our clearing firm and on your monthly statement. Any whole shares from dividend reinvestment will appear on your platform after a new calendar year (in January). Dividends payments base on the total shares you own, including any whole or partial shares from prior dividend reinvestment.