- Earned vs. Paid Dividends
- Negative Dividends
Your M1 Portfolio will display your dividends in two places: Performance and Activity.
You will see your dividends in your performance when they are earned. It will be displayed in your Portfolio gain.
When dividends are paid, you will see the dividends paid by each security in your activity feed.
Paid dividends will collect in your cash balance.
If a dividend payment causes your cash balance to exceed your cash control threshold, your cash balance will be automatically invested in your portfolio based on your target allocations.
Earned vs. Paid
Your earned dividends (which appear in Portfolio gain) and your paid dividends (which appear in activity) are different.
All dividends will be earned before they are paid.
A dividend has two important dates: ex-dividend and payable.
The day a stock or fund must be owned by to be owed a dividend.
All owners of the stock or fund before market open on the ex-dividend date will be paid the dividend.
The day a dividend will be paid to a stock or fund owner.
It will always be after the ex-dividend date.
Stock ABC has an ex-dividend date on 1/15 and a Payable date on 1/25.
Stacy bought a share of ABC on 1/14 and Eddie bought a share of ABC on 1/15
Stacy is owed the dividend and Eddie is not. Stacy will be paid the dividend on 1/25. Between 1/15 and 1/25, Stacy will have earned the dividend, but it hasn't been paid.
You will always earn your dividends before they are paid.
If you see a dividend reflected on your recent account activity that displays a negative dollar value, what you are seeing is an American Depositary Receipt (ADR) fee.
ADRs allow US investors to invest in foreign securities.
When you own an ADR, a custodian oversees the ADR and maintains the records.
The custodian collects the dividends paid out to the foreign issuer, converts them into US dollars, and deposits them into your account.
The custodian charges a fee for all these services and this fee is called the ADR fee.