When a stock pays a dividend, how do you get the dividend ? Do they mail you a check?

 

  • dkwr14 5:03 pm on March 9, 2010

    It usually gets deposited into a money market account that is associated with your brokerage firm; and in most cases your dividends are re-invested back into the stock to buy you more shares of the company.
    In a rare case that you do not have re-invested dividends, and you do not have a money market account with your broker, than YES your dividend check will be mailed to you.
    Its usually not much though.. A couple dollars a best

  • sfurules 5:03 pm on March 9, 2010

    if you are a holder of the actual certificate then yes, you will most likely get a check in the mail.

    if you hold the security though a brokerage house, they will pay the money to the brokerage house who then distributes it to you. I’m sure they have many options on how to receive the money, and you should inquire there.

  • Carlos R 5:03 pm on March 9, 2010

    The first answer is right. Another alternative is a DRIP, which is a dividend reinvestment plan. The Company pays the dividend, but the money goes to buy more stock in the Company, with little or no commissions or service fees paid by you. Not all companies have DRIPs, but many do. And you can send in additional money whenever you want to. If you have a Company you really like, and if you plan to hold the stock for a long time, this can be an excellent way to build up the number of shares you have. And if you ever want to sell all or part of your holdings, you can do that, too. And with a much smaller commission than you would normally pay your broker.

  • ajrimmer333 5:03 pm on March 9, 2010

    With the broker I use, dividend payments are always posted to may account. I have never ever seen an actual share (though I am entitled to them) so I have no other point of reference. I’m sure there are other ways though I have no personal experience of them.

  • Mike 5:03 pm on March 9, 2010

    It depends on what you wrote down when you first invested in the stock. If you checked the box that says dividend reinvest then the dividends you would receive goes to purchasing a portion of additional stock. If you didnt check that box, the company will mail you a dividend check. Call your stockbroker and see which option you selected.

    If you dont have a stockbroker, make sure the company issuing the divident has a current address for you.

    Good luck and happy investing.