Overview
Learn how dividends from US stocks work on Thndr, including when you can expect to receive them and how they are credited to your account.
Types of dividends
Cash | All dividends are rounded to the nearest penny Automatically added by Alpaca |
Stock | All dividends are rounded to the nearest number. Automatically added by Alpaca |
What can delay your dividend
Thndr credits dividends as soon as they are received from Alpaca. In most cases, cash dividends arrive within 5 business days of the official payment date. Occasionally, delays can occur due to processing timelines outside Thndr's control.
If it has been more than 5 business days since the payment date and you believe you were eligible, contact support through in-app chat with the stock name and dividend details.
Dividend Payment Process
Announcement Date | The day the company announces the dividend |
Ex-Dividend Date | The cutoff date to be eligible for the dividend. If you purchase the stock on or after this date, you won’t receive the dividend |
Record Date | The date the company checks its records to see who is eligible for the dividend |
Payment Date | The day dividends are actually paid out to shareholders |
Eligibility: who gets the dividend?
To receive a dividend, you must own the stock before the ex-dividend date.
Action | Timing | Dividend status |
Buying | Before the ex-dividend date | ✅ Eligible |
Buying | On or after the ex-dividend date | ❌ Not eligible |
Selling | Before the ex-dividend date | ❌ Not eligible |
Selling | On or after the ex-dividend date | ✅ Eligible |
How are taxes on US dividends calculated?
When you receive dividends from US stocks, a portion of the dividend may be withheld as tax.
The applicable tax rate depends on your country of tax residence and whether your country has a tax treaty with the United States.
A 30% withholding rate is generally applied to dividends paid to non-US investors by default, However, you may be eligible for a lower tax rate if:
Your country of tax residence has a tax treaty with the United States.
You have submitted a valid W-8BEN form to confirm your country of tax residence.
If your country does not have a tax treaty with the US, or if you do not have a valid W-8BEN on file, the default 30% withholding rate will apply.
Tax rate under a tax treaty
If your country of tax residence has a tax treaty with the United States and you have a valid W-8BEN, you may be eligible for a reduced withholding rate on applicable US-sourced dividends.
The applicable tax rate varies from one country to another based on the tax treaty between the United States and that country. Therefore, the reduced rate is not necessarily 15% for all countries.
For example, the applicable tax rate may be 15% for certain countries, such as Canada or France, while a different rate may apply to residents of other countries based on the relevant tax treaty.
FAQS
Do I need to do anything to receive my dividend?
You don’t need to take any action to receive your dividend. You just need to hold the shares on the ex-dividend date to be eligible for the dividend.
Where are cash dividends paid?
Cash dividends are credited directly to your US Market wallet. You’ll also receive a notification confirming that the dividend for the relevant stock (e.g., XXXX) has been credited to your wallet.
Why was an amount deducted from my dividend payment?
The amount deducted from your dividend is due to taxes withheld from the dividend payment.
The applicable tax rate depends on your country of tax residence and the tax treaty between your country and the United States. The tax is deducted from the dividend before the remaining amount is credited to your wallet.
I sold my shares after the ex-dividend date — do I still get the dividend?
Selling shares after the ex-dividend date does not affect your eligibility for that dividend. Eligibility is determined by whether you held the stock before the ex-dividend date, and selling after that date retains your right to the upcoming payment.