A dividend is a payment to a shareholder when a company shares its profits. The amount of dividends you receive will be proportional to the amount of stock you own in that company. Dividends are usually paid in cash (not additional stock), and will be deposited into your Portfolio Cash. You may earn dividends on stocks and ETFs. 

Note: Dividends paid on investments held in your Smart Portfolio will be automatically reinvested in your Smart mix. 

Companies may pay dividends, but they are not required to. Generally, larger, more established companies tend to pay dividends, although they are not the only ones who do. Dividends are usually paid on a quarterly basis, but the timing depends on the company’s board of directors. 

[Want to research dividends? Check out NASDAQ’s Dividend History page]

Dividends and Taxes

Depending on the amount of dividends you receive, you may need to report them on your taxes. If you receive a total of $10 or more in dividends in a calendar year, you’ll receive a 1099-DIV form to file along with your taxes. 

Have specific questions about dividends and taxes? Please consult a tax professional.