Dividends are paid directly into your investing account approximately 2-3 trading days after the payment date. You’ll be eligible for a dividend if you own a share (including fractional shares) through its ex-dividend date.
The dividend amount will be proportional to your holding. For example, if a company pays a dividend of US$10 per share and you hold 1.34 shares in that company, your dividend will be US$13.40 (minus any applicable withholding tax).
There is a 30% withholding tax on dividend payments in the U.S. This is reduced to 15% after the completion of a W-8BEN form, which Stake arranges on your behalf when you make your first deposit on Stake Wall St. You can read more about W-8BEN forms here.
Please note that some companies that pay dividends may have different withholding amounts. You can view all the relevant information by going to More > Funds and Balances, under Transactions.
Dividend Reinvestment Programs (DRIPs)
At this time, Stake doesn’t offer a dividend reinvestment program. However, thanks to fractional shares, you can manually reinvest your dividend cash payments back into the underlying stock or ETF (minimum trade size US$10).