Yes, we pay out any dividends that you are eligible to receive.

How do I know if I’m eligible for a dividend?

• You’ll usually need to own the relative stock or instrument on or before a specified date, known as the “ex-dividend” date. This date is announced by the company usually a few weeks before the dividend payment date
• If you purchased the stock after this date, you won’t be eligible. You’ll be able to keep track of upcoming dividend payment dates in the Lightyear app by checking the Investment Calendar (in the instrument tab)

When will I receive my dividend?

While the dividend payment date (when the company distributes dividends) has been provided, with all dividends it can take a few business days for payments to reach the investment firm and then be forwarded to your account. Our team will forward the dividends to you as soon as we receive them from our partner. You don’t need to do anything, it will automatically be credited and you’ll receive a notification as well as a record in your activity feed and on the relevant instrument tab in the app.

Do you pay dividends for applicable fractional shares?

Yes, we do, rounded to the nearest cent. You’ll receive the relative percentage proportionate to the amount of the share you hold, e.g if you hold 0.5 of a dividend-paying share, you’ll receive 0.5 of the dividend amount.

Dividend taxes

Dividends are usually subject to regional withholding tax which is automatically deducted.

For eligible non-US taxpayers, we have submitted the relative W-8 BEN form to reduce your dividend withholding tax rate from 30 to 15% for any US dividends you receive. In this case, we display the relative tax rate and deducted amounts to you in the dividend activity.

See also: Dividend taxes