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When you buy shares in a company, you become one of its shareholders.
Some companies choose to share portions of their profit with shareholders, this is called a dividend.
A dividend can be distributed as cash or free shares.
Dividend Terms to Know
- Announcement Date: The company confirms it will distribute a dividend and announces all related dates.
- Ex-Dividend Date: This is the last date to qualify for dividends. To receive the dividend, you must buy the stock before this date. If you buy on or after the ex-dividend date, you won’t receive the dividend.
- Record Date: On this date, the company checks its shareholder records. Only investors with stocks already settled by this date (from buying before the ex-dividend date) are marked as eligible.
- Payment Date: This is when the company actually sends out the dividend. Once the payment is processed through the market’s clearing system (like DTC in the U.S.), the funds are added to your Thndr account.
Types of Dividends
Cash Dividends
Cash dividends are added to your Thndr account after we receive them from our broker-partner.
This happens after the official payment date. In some cases, the credit may appear a few days later depending on DTC settlement.
Dividends are added after any tax deductions. For non-US residents, an average of 30% withholding tax is automatically applied. Some countries may have lower rates.
US Cash dividends will typically be added to your Thndr wallet within 5 business days of payment date.
Canadian dividends may take an additional 2–3 business days to be processed. Dividends from non-exchange listed securities may also take longer.
Stock Dividends
Stock dividends are automatically added to your Thndr account once processed by our US broker-partner.
Any fractional value is rounded to the nearest cent when applied.
You will see the additional shares reflected in your portfolio when the process is completed within 5 business days of the payment date
