Dividend payment

0
0

Ok I have this question regarding dividend payments: I bought recently stocks that pay dividends on questrade (Im fairly new in the stock market world). I’ve received notifications several times saying that a dividend payment is coming in XX days…yet once the day comes, I say no changes in the value of the stock or anything related.

Do you know why is this?

Thanks

Marked as spam
Asked on May 6, 2020 4:45 pm
2 views
0
Private answer

Hey there.

So, what exactly do you mean by change in stock value? Typically a stocks price will drop when it declares a dividend.

If you mean a change to your actual account value, I can show you where you can find this.

Head to your account (desktop browser is easiest) and go to the "reports" tab. From there, select account activity. You'll see stuff like trades,deposits, DRIPs and Dividends. Unselect everything except dividends.

From here you will see all your dividend history. Now, you may not be noticing account changes because you may not own a lot of shares. You'd have to fill me in on some of your positions before I could verify this. But lets just use an example.

TD Bank (TSX:TD) pays a $3.16 dividend every year. That means every quarter you will receive $0.79 from the company. If you own 20 shares, you'll get $15.80 from the company every quarter.

On an account balance of say.... $13746 it can seem like nothing has changed when it goes to $13761 after dividends.

That's why I really like to use the method above where you go into your account activity tab to see your payments.

Also, another possibility would be that you enrolled in a DRIP program (dividend reinvestment.) In that case, your dividends would be re-invested back into the company.

Or, yet another situation could be the payment was issued on xx day, but it will take a few days to hit your brokerage account.

Any other questions, let me know.

Marked as spam
Posted by Dan Kent
Answered on May 7, 2020 10:12 am