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Residual dividends

time 11mths ago
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By · 7 Jul 2020
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Mitchell Sneddon
By ·
7 Jul 2020
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time 11mths ago

Question

Hello and was wondering about dividend reinvestment as in if you are opting for "full reinvestment" and say an ETF like IVV is trading at $455 per share and your dividend is say only $206 all up what happens to it? Thank you - Submitted by Warren

Answer

Hi Warren,

What you are referring to here is having residual dividends left over as you cannot buy half a share or a third of a share. This remaining dividend isn't lost in the ether, it gets carried forward to the next dividend. If you sell your holding prior to the next dividend period your residual balance will be paid out.

Regards,

Mitchell Sneddon

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