Knowledge Center

Optional Dividends

Optional dividends allow shareholders to choose between cash or stock for their dividend payment. As a shareholder, you can specify how you want to receive an optional dividend by clicking the “My Account” tab, followed by “My Information & Preferences” and then the “Account Preferences” tab. Select either the “Cash” or “Stock” button next to “Accept Optional Dividends As:” If you don't specify a preference, Scottrade will pay the dividend based on the issuing company's default payment selection. If you choose stock, it will be acquired commission-free.

If one of your securities pays an optional dividend, you'll see a paperclip icon next to that security when viewing your positions from the “My Account” tab and selecting “Positions.” (The paperclip icon also can signify that some other action is needed.) After clicking the paperclip, you'll be asked whether you would like to receive the optional dividend in cash or stock. You can change their selection any time before the date of the dividend payment. Please note the amount of stock or cash the company is going to issue as part of the dividend may have limitations. Because of this, you may not receive the entire dividend as you instructed. You should review the material issued by the issuing company or visit the issuing company's website for complete details of the dividend.

If you choose to take stock for your optional dividend, only whole shares will be purchased. Any funds remaining after purchasing shares will be placed into your cash balance. Optional dividends are not eligible for Scottrade's commission-free Flexible Reinvestment Program (FRIP).

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The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.