Dividends

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What is a dividend?

A dividend is a share or portion of a company’s profits distributed to eligible shareholders. Paying dividends enables companies to distribute their earnings to shareholders, which helps investors feel appreciated for their continued investment through higher returns and encourages them to keep holding the shares.

The frequency of dividend payments is determined by the company. Some may allocate dividends once or twice a year whereas others do not issue any dividends at all.

What are the dividend payment methods?

A dividend can be received in two forms. A cash payment or DRP (Dividend Reinvestment Plan) which allows you acquire dividends in the form of additional shares with no additional brokerage costs.

  1. Cash Payment: To receive the cash dividend payment on time, eligible shareholders must notify the Company’s share registry of their chosen bank account.
  2. DRP: Alternatively, if you prefer to receive additional shares in the Company instead of cash, you can opt into a Dividend Reinvestment Plan, by contacting the Company’s share registry.

To find if a company offers a DRP to go Quotes & Research > Quotes > Company Research > Code > Company Info.

Where can I find a list of all Upcoming Dividends?

You can find a list of all upcoming dividends under Quotes & Research > News > Upcoming Dividends.

This list will provide you with a comprehensive overview of companies that are paying dividends in the next couple of months.

Upcoming dividends screenshot

You can also find all information regarding Interim and Final Dividends with Ex-Dividend and Pay dates under Quotes & Research > Quotes > Company Research > Code > Dividends.

Dividends screenshot

In this table, you will see the following:

  • Dividend Type: refers to whether interim, monthly, or final.
  • CPS (Cents per Share): refers to the dividend value based on the quantity of shares the eligible shareholder owns.
  • Franked (%): refers to the percentage on which the company has already paid tax on.

  • Ex-Dividend Date: cut-off date to determine eligible stakeholders to receive a dividend.

    An eligible shareholder must purchase and hold the shares before the ex-dividend date. Please note that the last day you can purchase the shares and still be entitled to the dividend is on the day before the ex-dividend date.

    If the shareholder decides to sell the shares after the record date and prior to the ex-dividend date, they will not be eligible for the dividends.

  • Pay Date: refers to the day when eligible shareholders will receive their dividends.

This information is intended to provide information for educational purposes only and is subject to change at anytime without notice.

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