What are Dividends?

Dividends are a portion of the company's profits that are divided and paid to eligible shareholders in proportion to the number of shares they hold. By paying dividends, companies can reward their shareholders for their investment, boost shareholder confidence, and potentially encourage them to hold on to their shares for the long term.

The frequency of dividend payments is determined by the company, with some companies paying dividends once or twice a year, while others may not pay any at all. Special dividends, which are generally one-off payments can also be paid at the company’s discretion.

Dividends Illustration

How can I become eligible to receive a dividend?

To qualify as an eligible shareholder and receive a declared dividend payment, you will need to hold the shares or purchase them prior to the ex-dividend date. It is important to note that the final day to purchase shares and be eligible for a declared dividend is the day before its ex-dividend date.

You will not be eligible to receive the dividend if you purchase the shares on its ex-dividend date.

On the specified payment date, eligible shareholders will receive their dividends.

What is the difference between Ex-Dividend Date and Record Date?

The ex-dividend date and the record date are two important dates that relate to the payment of dividends to shareholders:

Ex-Dividend Date: refers to the purchase cut-off date to determine eligible shareholders. If you purchase shares on or after this date, you will not be entitled to receive the upcoming dividend payment.

Record Date: refers to the date set by the company to record all eligible shareholders to receive the dividend. You must be recorded on the share register of the company on or before the record date to be entitled to receive the dividend payment.

What are the dividend payment methods?

A dividend can be received in two forms. A cash payment or as a Dividend Reinvestment Plan (DRP) which allows you acquire dividends in the form of additional shares with no additional brokerage costs. It is important to note, dividend reinvestment plans are not offered by all companies.

  1. Cash Payment: To receive the cash dividend payment on time, eligible shareholders must notify the Company’s share registry of their chosen bank account.
  2. Dividend Reinvestment Plan (DRP): Alternatively, if you prefer to receive additional shares in the company instead of cash, you can opt into a Dividend Reinvestment Plan, by contacting the company’s share registry.

Find the DRP status of a company on our website under Quotes & Research > Company Research > Code > Dividend > Company Details.

To learn about the Westpac Share Trading Dividend Direction Service (DDS) click here.

Where can I find a list of all upcoming dividends?

You can find a list of all upcoming dividends under Quotes & Research > Tools > Upcoming Dividends.

This list contains companies that are paying dividends in the coming months.

Upcoming Dividends

You will also have access to a range of information regarding upcoming and historical dividend records under Quotes & Research > Quotes > Company Research > Dividends.

Upcoming Dividends

Dividend Type: refers to interim, special, or final.

CPS (Cents per Share): refers to the dividend value based on the quantity of shares the eligible shareholder owns.

Franked (%): refers to the percentage on which the company has already paid tax on.

Ex-Dividend Date: cut-off date to determine eligible shareholders to receive a dividend.

Pay Date: refers to the date eligible shareholders will receive their dividends.

This information is intended to provide information for educational purposes only and is subject to change at anytime without notice.