Dividends are one of the benefits that a company provides to its shareholders. These can be distributed quarterly, semiannually, or annually (the payment frequency depends on how the company decides in its board meetings).
It is important to verify, at the time of purchasing your stock, how often the company typically pays these benefits and when you need to have purchased the stock to be eligible for that benefit (Ex-Dividend Date).
Keep in mind that when you receive a dividend payment, certain withholdings are applied, which may vary depending on your tax situation:
For non-U.S. taxpayers, the Non-Resident Alien (NRA) tax applies, which is typically 30% unless your country of residence has a valid tax treaty with the United States.
For U.S. users currently in a B-Notice situation (meaning their ID does not match the IRS records), a 24% tax will be applied.
When the company pays dividends, this money is deposited into your Vest account and will appear in the “Available to Invest” balance.
If you want to see the dividends you’ve received, go to your transaction history.
Securities trading is offered through Northbound Securities LLC, an affiliate of Vest