A dividend is a way to share in the profits of companies you own stock in.
Dividends are issued as a fixed payment (per share of stock) to the owner of the stock. As an owner of fractional shares, dividends are like your share of company profits.
For example, if you own five shares of ABC stock, and ABC company declares a $.05 dividend, you will receive $0.25 in dividends ($0.05 x 5 shares). Dividends are often issued by more mature companies and can be delivered to investors sporadically.
How dividends work in Bumped
You might receive dividends from holdings you have in your Bumped account. If you receive a dividend, Bumped will reinvest your dividends back into the same holding where possible. We’ll let you know about dividends in your reward activity. You’ll also be able to see any dividend activity in your account statements which are available in the Documents section of the app.
If a company pays you a dividend that’s less than $0.01, we won’t be able to add it to your account. So you’ll only see dividends of $0.01 or more.
In order for a quantity of stock to qualify for a dividend, the stock must be held in your account prior to the ex-dividend date (the date you’ll need to own stock by in order to receive a dividend).
To learn more about dividends, head on over to our blog.