• Q. What is a dividend?

  A dividend is a payment to a shareholder when a company shares its profits. When a business makes a profit, they can choose to pay dividends to shareholders. If you own shares, you get a certain amount of the profit. These payments to shareholders that come out of the profits are dividends.…

• Q. Can I earn dividends from my Stash account?

  Absolutely! Depending on your portfolio, you may receive dividends. These will automatically be reflected in your Portfolio Cash. You can see a record of your dividends in the Activity section of your Invest page.…

• Q. What is dividend yield?

  A dividend is a payment made to a company’s shareholders. It’s typically paid out as a way to share a company’s earnings.   The dividend yield is that amount being paid to the shareholder written as a percentage of the stock price.…

• Q. How are dividends paid out?

  Most brokerage accounts pay dividends directly to your cash account. On Stash, this means dividends will be sent to your Cash Balance.…

• Q. Do ETFs pay dividends?

  Some ETFs pay dividends and some do not. Managers of individual ETFs decide if and/or when an ETF pays dividends. Usually ETFs pay dividends depending on if: The companies within the fund are also paying dividends The prospectus (AKA objective) of the ETF is to generate income for investors through dividends Checking the fund’s website can give you more information about whether a specific ETF might pay dividends.…

• Q. Are dividends paid quarterly?

  Usually, but not always. Some publicly traded companies pay quarterly dividends. They do this because they’re legally required to report a draft of their financial statements every quarter (including how much money they want to distribute to shareholders). However, the timing of dividend payments depends on the board of directors.…

• Q. Where do dividends come from?

  When companies generate revenue, all the money that’s left after accounting for the cost of business is the net profit, or net income. Shareholders (who are usually represented by a board of directors) choose what to do with that money. Usually,…

• Q. Are investors taxed on dividends?

  Yes – dividends are taxed as income, because they are money that you are making off of the money you have invested. If you received dividends of $10 or greater, you will have tax forms. If you have any questions regarding taxes within your Stash account,…

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• Q. Are dividends guaranteed?

  No. Many companies have a long, reliable track record of paying dividends, but no company is required to pay them. Dividends are a subset of revenue generation and profitability. Because these factors cannot be guaranteed, dividends are also not guaranteed. However,…

• Q. Which companies pay dividends?

  Companies that pay dividends tend to be large, well-established corporations. However, they are not the only ones. Many dividend-paying companies are looking to distribute some profits from their day-to-day business operations to their shareholders.…

• Q. Are dividends taxed?

  Dividends can be taxed as income. Dividends are taxed at different rates, depending upon whether they are considered qualified or nonqualified. If you have any questions regarding your own tax situation and how your Stash account may impact it, please consult with a qualified tax professional.…

• Q. What are some important dates to keep in mind when investing in dividend-paying stocks or ETFs?

  When it comes to getting the benefits of dividends, there are a few dates to keep in mind. Dividends are paid on the payment date. This is set by the board of directors and, ultimately, the shareholders. This is the date the dividend checks or electronic payments are sent to eligible investors.…

• Q. What happens to my dividends?

  The ETFs held in your Smart Portfolio may periodically post dividends. When these dividends roll in as cash, we automatically reinvest them in your Smart Portfolio so that your money is put to work in the markets (the sooner, the better).…

• Q. How are dividends calculated?

  The calculation of dividends is up to each company’s board of directors. Often dividends are calculated based on how much of the company’s net profit the board wants to distribute to shareholders. The dividend amount varies based on how much money per share the board decides to pay out to investors.…

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