A dividend is a corporate action consisting of a cash or stock payment to shareholders. It is subject to approval by the company's board of directors and represents a distribution of the company's earnings to a specific class of shareholders. Not all companies pay dividends to their shareholders.
At Folionet, you can view dividends you have received directly in the History section or in your monthly account statements, available on both the app and web platform.
This is automatically managed by our custodian, Apex Clearing LLC. By default, cash dividends are credited as available balance in your account. If you prefer these dividends to be automatically reinvested in the purchase of more shares of the same company, you can request this option by writing to support@folionet.com.
Regarding taxation, dividends are subject to withholding tax by the IRS. The applicable withholding rate depends on the account holder's country of residence and the country of origin of the issuing company. In most cases, this withholding is 30%, although exceptions may exist under international tax treaties.
If you want to activate automatic dividend reinvestment, simply send an email to our support team requesting it. In Self-Investing Accounts, dividends are credited in cash by default. For Addvisory Accounts, reinvestment may be automatically activated depending on the type of portfolio selected.
