Dividends

To stay informed about corporate actions, check either the Corporate Action Manager tool or the Corporate Action section of the “Secure Message Center” in the Client Portal. For official and essential information, refer to the company’s Investor Relations page. For more information click here (link to Corporate Actions page).

Received Corporate Actions are also listed in the Corporate Actions section of your account statement (link to statements).

Once your stock dividend has been paid, you can find all the details in your Activity Statement (link to AS article) under Corporate Actions.

The change in the number of shares you own will also indicate the stock dividend received.

The dividend is determined by the company itself. In some cases, you can choose between the type of dividend you can receive. You can read more on how to manage your Dividend Choices in this Corporate Action article (insert url).

Dividends come in various forms, and understanding the different types can provide insights into the way companies distribute profits to their shareholders. Here are explanations of some common types of dividends:

1. Cash Dividends: Cash dividends are the most common type of dividend. They involve the distribution of cash to shareholders on a per-share basis. Companies usually declare a specific amount per share, and shareholders receive the dividend in the form of cash directly deposited into their brokerage or bank accounts. Cash dividends provide investors with immediate income that can be reinvested or used for personal financial needs.
2. Stock Dividends: Stock dividends, also known as bonus shares or scrip dividends, involve distributing additional shares of a company’s stock to existing shareholders. Instead of paying cash, the company issues new shares in proportion to the number of shares owned by each shareholder. Stock dividends increase the total number of outstanding shares but do not necessarily increase the overall value of the investment. However, they can provide an opportunity for shareholders to accumulate more shares without additional investment.
3. Special Dividends: Special dividends are one-time payments declared by a company separate from its regular dividend policy. They are typically paid when a company experiences extraordinary profits or receives substantial proceeds from an event like a sale of assets. Special dividends can be larger than regular dividends and provide an additional financial benefit to shareholders.

The ratio of the offering indicates the proportion in which the rights are exchanged to obtain new shares. A ratio of 10:1 means that you can subscribe with 10 Subscription Rights to acquire 1 new share. Both the amount and ratio of the Subscription Rights will be listed in the Corporate Actions section of your account statement.

Submitting Subscription Rights to purchase new shares is generally a voluntary option. Sometimes, these Subscription Rights lose their value if they are not used to purchase new shares. If you take no action with these rights, these rights will become worthless. The expiration date and (if applicable) proceeds are displayed in the Corporate Actions section of your account statement.