Stocks : Dividend Payouts

Investments
#1

Hi, I just wondered how a dividend payout will work with Plum? (Sorry for my naivety here)

Let’s say I invested £10.00 in a stock that pays a monthly dividend (there are a few) I understand the dates you get in don’t always mean you get a payout in the first month, you need to be in before a certain date and that there may not be a payout at all that month, but when the time is due and let’s say it announced it going to be 1p, does that simply mean my investment will go up by 1p after the payout, so I would now have £10.01 of that stock in Plum ? is it as simple as that?

#2

Hey @PixelatedDad :wave:

Not all companies on the stock market have to pay out dividends. Newer companies, or those in the technology space, often opt instead to redirect profits back into the company for growth and expansion, so they do not pay dividends. Some examples of companies that don’t pay dividends are Tesla, Netflix, Amazon. Dividends are paid out quarterly to the shareholders.

Plum will pay out dividends for companies that issue them. The amount will be credited to your Primary Pocket when it is issued & you will see the dividend transaction on your transaction list in the Money Tracker section of your Stock Portfolio

If you need further assistance, I would suggest reaching out to help@withplum.com! :smile:

#3

Thank you, yes understand not all payout, but there are some that do monthly payouts, for example, The Realty Income “The Monthly Dividend Company” - But I think you answered my questions, it doesn’t automatically go back into the stock, the dividend payout goes to my primary pocket, so if I wanted to re-invest it back into the stock that paid out I would have to do that manually? Thank you - love Plum

1 Like
#4

Hey @PixelatedDad :wave:

Your assumption regarding re-investing dividends would be correct!

And we love that you love Plum! :smile: :purple_heart:

#5

How do the accumulation funds payout back into the funds on Plum?
I see no evidence of any accumulation.
Is Plum going to show us how much money gets re-invested each time the fund accumulate? I would have thought the re-investment of acculturation would buy more shares? How are we going to see this compound?

#6

You won’t see anything directly in Plum.

Accumulation funds reinvest directly into the fund on your behalf, so there’s no interaction with Plum or you as the investor. The reinvestment is reflected in the fund’s value itself which is impounded into the fund share price.

There are plenty of more detailed explanations of this on Google if you search “accumulation versus income funds”.

#7

I understand in a way but how do we know what’s been invested?

#8

Go to the fund managers website or search the exact fund in Google and there’s websites (fund providers, or like HL or Morningstar) that provide info on the fund’s performance metrics, underlying holdings, etc.