First dividend I have ever been due. The record date was last week, the company announcement lists a payment date about three weeks out, and my account shows nothing at all, not even a pending line. Is the payment date the day it lands with me, or does the broker take extra days on top of that? Trying to work out whether to worry.
Foreign holdings take longer and are messier. Withholding tax is deducted at source so the amount is smaller than the headline, and it can arrive a week or two after the stated payment date depending on the custodian chain.
And the withholding rate depends on treaty paperwork your broker may or may not have filed for you. Worth checking once rather than assuming.
Check the currency too. If the dividend is declared in one currency and paid into an account in another, some brokers hold it a day or two for conversion and take a spread you never see itemised anywhere.
Set a calendar reminder for the payment date plus five business days. It solves the anxiety and the chasing in one step.
@pressuretank_pia · last yr. · 3 replies
The payment date is when the company pays out, and your broker typically credits you that day or within a couple of business days after. Three weeks between record and payment is completely normal, and for some companies it is six. Most platforms show nothing pending until the payment date itself, which is why it looks like nothing is happening. If it is more than about five business days past the payment date, then it is worth asking your broker.
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@pressuretank_pia · last yr.
Right. Some platforms have a projected income view, which is nicer, but plenty show nothing at all until the money arrives.
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@seedstart_sib · last yr.
So no pending line is expected rather than a sign something went wrong. Good.
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