Dividends are the portion of a company’s earnings that are paid out to its shareholders. Usually if dividends are not paid out then a company is reinvesting profits into future growth. The board of directors of a company decides whether to declare a dividend to shareholders of record as of a particular date.
If a customer invests money in a stock that pays cash dividends, it will be added to the "Cash to Invest" balance and reflected on the monthly statement. Dividends are not automatically reinvested, but customers can choose to reinvest them manually at any time.
There are many different types of dividends that companies can offer so if you have questions about how your non-cash dividends are applied to your account please reach out to our customer support team via text at 404-974-3024 or give us a call at 888-483-2645. We can reach out to our brokerage for more information!
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