Dividends, Splits and Corporate Actions

Just a head's up: Not every company pays a dividend. In fact, companies that do pay a dividend will pay them on their own schedule. Most companies pay on a quarterly basis, but some pay annually, semi-annually, or even monthly.

Finding out whether a company pays a dividend takes some research on your end. Take a look at the instructions below to get started:

1. Go to Research > Markets Overview
2. On the right side of the page, enter the name or symbol in the 'Get Quote' box
3. Click the Get Quote button; you will be taken to the detailed quote for this security
4. In the Key Statistics & Ratios section, you will find information on the security's Dividend Yield and Annual Dividend amount

Tip: The dividend a company pays (and the cash amount) it pays is subject to change. A company might pay a dividend now, but there isn't a guarantee it will in the future.

For each stock, ETF, and mutual fund you own, you can choose whether cash dividends and capital gains distributions are reinvested in the same security (at no charge) or paid out in cash.

Go to Accounts > Portfolio > Dividend Reinvestment (sign in required). Click Edit next to a security to make changes to its reinvestment settings.

If you want your cash dividends and capital gains distributions to be handled the same for all of your stocks and ETFs or for all of your mutual funds, you can change them all at once. Under `Stocks & ETFs,' click Edit all if you want to change the settings for all of your stocks and ETFs. Under `Mutual Funds,' click Edit all if you want to change the settings for all of your mutual funds.

Keep in mind that not all stocks, ETFs, and mutual funds pay dividends. Also, while mutual funds often do have capital gains, it is very rare for a stock or ETF to have capital gains.

You can view cash dividends and capital gains distributions that have posted to your account (and any reinvestments if you've chosen this option) by going to Accounts > Transaction History (sign in required). You'll see the following codes for these postings in your transaction history:

• Cash dividend – DIV
• Dividend reinvestment – DRV
• Short-term capital gains distribution – CGS
• Long-term capital gains distribution – CGL
• Capital gains reinvestment – DRV

While you can see reinvestments in your transaction history, you will not receive a trade confirmation when cash dividends and capital gains distributions are reinvested.

Stocks and ETFs – Reinvestments
If you choose to have your cash dividends and capital gains distributions reinvested, any reinvestment will take place on the payable date at the previous day's closing price.

Mutual Funds – Reinvestments
If you choose to have your cash dividends and capital gains distributions reinvested, any reinvestment will be based on the "ex-date" closing price.

Tip: One-time special cash dividends will not be reinvested, even if you have chosen to reinvest cash dividends.

We have a special place on the website to set your dividend reinvestment preferences. You can choose to either reinvest dividend payments into more stock (automatically), or have the cash payment go into your cash balance.

Just follow the instructions below to get started:

1. Click on Accounts > Portfolio > Dividend Reinvestment (sign in required)
2. Click Edit next to a security to make changes to its reinvestment settings. Click Edit all if you want to make changes to the reinvestment settings for all of your securities
3. Click Save to save your preferences

Tip: You'll not receive a trade confirmation when dividends are reinvested, but the dividend reinvestment will take place on the payable date at the previous day's closing price. Also, dividend reinvestments are noted with DVR in the 'Action' column of your account's Transaction History.

After a stock splits, the share price that is used to calculate the market value of your positions is updated automatically. The tricky part is the quantity of shares you own isn't updated until two business days later, so there may look like a temporary discrepancy. But, the monetary value of your position isn't affected by the delay.

For example: Tom owns 3.2 shares of stock XYZ, which initiates a 2-for-1 stock split (sometimes written as 2:1). On the ex-date of the split, the share price will be adjusted by ½. Two business days later, the number of shares Tom owns will be adjusted to 6.4.