We support several different dividend types:
- Ordinary dividend - a share of a company’s profits passed on to the shareholders periodically. Dividends are considered ordinary by default unless they meet special requirements put in place by the IRS.
- Extra dividend - a one-time dividend paid to the company’s shareholders. Unlike ordinary dividends, these dividends do not follow a regular distribution schedule and are usually paid in cash.
- Return of Capital - a payment that a company makes to its investors that is drawn from a company’s capital base, as opposed to its retained earnings.
- Capital Gain Long Term - fund managers buy and sell holdings throughout the year and pass profits from those sales to shareholders in the form of capital gains distributions. A gain on the sale of an investment owned for more than one year is considered long term for federal income tax purposes.
- Capital Gain Short Term - fund managers buy and sell holdings throughout the year and pass profits from those sales to shareholders in the form of capital gains distributions. A gain on the sale of an investment owned for one year or less is considered short-term for federal income tax purposes.
- Franked dividend - Dividends paid to a shareholder that come from pre-taxed earnings. A franking credit is attached to these dividends to avoid double taxation.
- Stock dividend - a distribution of stock of the same class share. For example security A distributes shares of security A.Stock dividend different class - a distribution of stock of a different class share. For example security A distributes shares of security B.