Dividends are paid directly into your brokerage account approximately 2-3 trading days after the payment date. You will be eligible for a dividend if you own a share through its ex-dividend date.
The amount of the dividend will be proportional to your holding. This includes fractional shares. For example, if a company pays a dividend of $10 and you hold 1.34 shares, your dividend will be $13.40 (less any applicable withholding).
In the US, there is a 30% withholding tax on dividend payments, but this is reduced to 15% with the completion of your W-8 form, which we arrange when you join Stake. You can read more about W-8 forms here.
When your dividend is paid, you will also see the withholding tax reduction.
Please note that some companies (for example, foreign ones) that pay dividends may have different withholding amounts. You will see all the relevant information on your Activity page inside Stake.
Dividend Reinvestment Program (DRIPs)
At this time, Stake does not offer a dividend reinvestment program. As you can reinvest in fractional shares, you can reinvest the dividend that was paid into your account back into the underlying stock or ETF.
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