Some companies pay dividends to their shareholders to distribute a portion of the company’s profits. Depending on the issuing company’s policy, these can be distributed in cash or additional shares. If a company you've invested in decides to pay dividends, the dividends will be credited directly to your Vest account.

How do dividends reach your Vest account?

Once a company announces and distributes dividends, shareholders receive the money. At Vest, this process happens automatically. When you receive a cash dividend, the corresponding amount is deposited directly into your Vest account in the currency it was paid. This process can take up to two business days from the dividend payment date.

Dividend Reinvestment at Vest

Vest does not currently offer an automatic dividend reinvestment program. If you wish to reinvest the dividends you receive, you must manually purchase more shares or invest in other assets on the platform.

The advantage of managing your reinvestments is that you have full control over how and when you want to use the dividends you receive, allowing you to tailor your investment strategy to your personal goals.

What should I do after receiving a dividend?

Once the dividend is deposited into your account, you can choose what to do with the funds. Some options are to reinvest in the same company, diversify by purchasing shares of other companies, or keep the cash in your account for future investments.

If you prefer to reinvest, you can easily do so from the Vest platform by following the usual steps to purchase shares.

What if I don’t want to reinvest the dividends?

If you decide not to reinvest the dividends, you can leave them in your account as available cash. You can withdraw those funds, use them to purchase other assets or leave them until you decide what to do with them.

Conclusion

Dividends are an excellent way to generate passive income through your investments. Although Vest does not offer an automatic reinvestment plan, we allow you to choose how to manage those dividends.

Remember to always review and adjust your investment strategy to ensure it aligns with your financial goals.

If you have any questions about how dividends work or how to manage them on Vest, please check our help section or contact our support team.

We are here to help!

For illustrative purposes only. Does not represent an investment recommendation. For more information, please see our Social Media Disclosure.