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Whether you are building your wealth or retired and preserving your wealth, dividends are an incredibly important part of your investment return. Below we dive into how Rask Invest handles dividends.
How can I see my dividends?
There is a dedicated section to dividends on your Rask Invest dashboard
The cash amount from the dividends will be added to the cash reserve balance until they are either paid out to you (if you have the income sweep turned on) or used to purchase more investments if you are reinvesting your dividends.
If you have the income sweep turned on you will see the dividends paid out once a month in the Deposits and Withdrawals section.
If your dividends are being reinvested you will see the transactions made in the Transactions section.
When are the dividends paid?
The payment of dividends will vary between ETF to ETF. Most of the ETFs held in the Rask Invest portfolios pay quarterly dividends. The cash ETF AAA pays monthly dividends.
I want to reinvest my dividends
Reinvesting your dividends is a fantastic way to build your wealth. The default setting for a Rask Invest account is for the dividends to be reinvested. To check if your dividends are set to be reinvested go to Investment Preferences and ensure the "Income Sweep" function is turned off.
I want my dividends paid out to me
If you are living off the proceeds of your portfolio of directing income from one investment to another turning the Income Sweep feature on is an easy way to automate having your dividends paid out.
To turn this feature on go to Investment Preferences via the Rask Invest dashboard and toggle the button from off to on. You will need to save and then verify the request.
When does the Income Sweep run?
On the 15th (or closest business day after) we will tally up all dividends paid in the prior month and transfer them in one lump sum out to your nominated bank account. You will see a history of these transfers in the Deposits & Withdrawals section on your Rask Invest dashboard.
How can I check my dividend settings and my linked bank account?
You can check your dividend settings and your bank account in the Investment Preferences section via the Rask Invest dashboard.
Are there franking credits on my dividends
Yes, some of your investments will pay franking credits. This will be detailed in your tax statement and you will receive the franking you're entitled to once you submit your tax return.
Do I receive the dividend statements?
No, to ensure you are not swamped with paperwork Rask Invest becomes your inbox and your dividends will all be compiled into one neat tax statement at the end of the year.