How are dividends processed?
Dividends are credited to your account after we receive cleared funds from the relevant custodian or paying agent.
The amount credited may be reduced by applicable taxes, withholding taxes or other deductions required by law. Dividends are allocated based on your recorded entitlement to the relevant stock. Entitlement is determined by your position at the close of business on the ex-dividend date. Purchases that settle after the ex-dividend date do not confer entitlement to the relevant dividend.
When will I receive a dividend payment?
Dividend payments are credited once we receive the funds through our custody chain.
The timing of the credit may differ from the issuer’s announced payment date due to settlement processes, intermediary processing and market infrastructure requirements.
Why did I receive less than the announced dividend?
Dividend payments may be subject to withholding tax or other deductions applied by the relevant market, custodian or tax authority.
The amount credited to your account reflects the net amount received by us after any applicable deductions.
How is withholding tax applied to dividends?
The treatment of withholding tax depends on the market in which the stock is listed, the applicable tax rules and the arrangements used by custodians and paying agents.
Any withholding tax applied before funds are received by us will be reflected in the net amount credited to your account.
What happens if I hold a fractional position when a dividend is paid?
Where operationally feasible, dividend payments relating to fractional holdings are allocated proportionately to your fractional entitlement.
The treatment of fractional entitlements may depend on the issuer, custodian and market infrastructure supporting the event.
Does Capital.com offer dividend reinvestment?
Capital.com offers a dividend reinvestment service for eligible stocks. When this feature is enabled, dividends credited to your account are automatically used to place a buy order in the same stock at the next available market open. The reinvestment order is executed at prevailing market price — price is not guaranteed. Where a dividend is received in a currency different from your account base currency, FX conversion applies before the reinvestment order is placed.
Which stocks dividend reinvestment applies to?
The service applies to all eligible stocks in your portfolio, including stocks added in future. You can enable or disable dividend reinvestment at any time in your account settings. Changes apply to dividends not yet paid at the time you make the change. Dividend reinvestment is not available for all stocks or markets. Eligibility depends on instrument type and market availability.
*Stocks are available in selected countries and are currently limited to existing clients.