so i get a lot of questions asking how dividends are paid using the robinhood app
and also when the dividends are paid so in this video i'm just going to address everything you
guys need to know and i'm also going to show you on my phone exactly where you can find that
information regarding dividend payments inside the robin hood app and i also want to mention right
here that we are not going to be talking about the technical stuff as it pertains to dividend dates
we are just going to be going over the basics so that you can understand what happens when
you get paid a dividend and the basics as to when to expect to get paid a dividend
so basically if you happen to be using the robinhood app and you do get paid a dividend
just keep in mind that the way you're getting paid is exactly the same on robinhood as it is
on all the other brokerages out there because they all have to follow the exact same rules
now without going into a ton of detail the way that dividends generally work
is that if you own shares of a company and that company happens to pay out a dividend as long as
you own those shares when they distribute those dividends then you'll get paid a dividend in the
form of cash now that cash is not going to go directly into your own bank account it's going
to go into your cash account so in this case it's going to go into robinhood's cash account whenever
you get paid out of dividend and that's exactly how it works for them and everyone else so let's
pretend that you're going to receive a 20 dividend on april 15th well the way it works is as soon as
april 15th hits that's going to be a trading day and that money is going to be directly deposited
into your cash account so you're going to have 20 bucks in your cash account
and at that point you can either buy more shares with it you can just keep it in the cash account
or you can transfer it to your bank and those are basically the options of what you can do with that
dividend as soon as it does get into your cash account and if you do want a more automated way
to take care of your dividends robinhood does have what's called the drip program which stands for
dividend reinvestment program and what this means is that as soon as you receive that dividend that
cash will go directly back into that company in the form of more shares and because robinhood
allows you to buy fractional shares you don't have to have enough cash to just buy one share
so for instance if a share was a hundred dollars and you only had a ten dollar dividend
then that ten dollars can go back into that company because you can buy fractional shares you
don't have to wait until it saves up to a hundred in order to buy a hundred dollar share so as long
as you have the drip turned on for that specific company then as soon as you receive a dividend it
will automatically reinvest that money on the next trading day and you don't have to do a thing so if
you want to reinvest your dividends automatically then you are going to want to turn on the drip
program which i will show you guys how to do that on my phone here in just a minute but just keep in
mind that if you're not using the drip program the cash is just going to sit in your account and you
can either transfer it to your bank you can just let it sit you can buy more shares or you can set
up recurring investments if you choose to do that option as well now if you are new to the robinhood
app i do have an affiliate link in the description below where you can actually get a free random
share just for signing up with them and that share can be valued up to about 200 bucks so definitely
check them out if you have an interest now let's hop right on my phone and i'm going to show you
guys exactly where you can find the dividend payment information inside the robinhood app
okay so if you're the type of person that owns a bunch of different companies and you really don't
care when you get paid dividends then the easiest way to tell is just inside the notification box
so you see here at the bottom you can see that there's a little dot usually that's going to
indicate that something new is happening and a lot of the time that happens to be a dividend
so let's click on that right now and we'll go right inside the notification so as you can see
i did get paid a little dividend from a vanguard etf if you just click inside of it it'll tell
you exactly how much you got so when you look at the history you can see that i made a whopping 19
cents and a dividend for owning that etf and then it also keeps your other history is here as well
now if you want to know the most that you can about dividend payments inside of robinhood
what you're going to have to do is go inside of your account settings so click the little person
on the bottom right and we'll go right into the account settings now from here you're just going
to click on statements in history and this is where we can find our dividend activity
so as you can see right here the top two dividends are the ones that are actually pending these are
the ones that i will get paid i just have to wait for those payment dates to occur so let's just
click on wmt dividend which is walmart and then i'll show you guys the information that's in here
now as far as the information goes regarding to robin hood and your dividends
this is the most information that you can possibly get so right here you have the announced date and
that was confirmed on march 19th of 2021 this is technically the record date and that means that i
owned the share when the ex dividend date occurred now this stuff is kind of complicated and i would
recommend watching this other video that i have on dividend dates if you guys are confused about that
kind of stuff so basically without getting super technical it just means if you do see a pending
dividend on robinhood then you will be getting paid that dividend so if you look below the
announced you're going to see the dividend payment and that's just going to penned until april 5th
2021 and on that exact date that is when i'm gonna get paid the dividend and then i can
choose what to do with it i can either transfer it to my bank or i can buy more shares with it
but like i said earlier robinhood is not going to do anything with that money unless you tell
them to with the drip program now if you scroll below here you're going to see number of shares
i don't own a full share of walmart i just own 0.68 so that is why they pay 55 cents per share
and that's why i'm getting 37 cents because i don't own a full share now that's all the
deep information that robin hood has as far as dividends go so if you guys want to find out that
information on your own you're going to have to go elsewhere and look up those specific companies
so for instance if you wanted to find out when walmart was going to pay out their next dividend
you could go on to something like yahoo finance or nasdaq.com just look up that specific company
and you can find out specifics when it comes to the dividends but on robinhood this is the most
information that they have regarding dividends so you do have to go elsewhere to find that
information if you want to look for it now at this point in the video if i have been making sense of
everything can you please comment down below and just say i got it that way i can tell if i've been
making sense about what i'm talking about or not thank you very much now if you want to activate
the drip program just go back into your settings so click the little person in the bottom right
and then from here just click on the tab that says investing because this is where the drip
is going to be now once you're inside here all you do is just scroll down until you see the one
that says dividend reinvestment obviously right now this is disabled and so all you have to do is
just click on edit dividend reinvestment and once you're inside here we're just going to turn it on
and then from here you're just going to see a list of all of the different companies you own
and at this point you can check or uncheck any of those companies that you want the dividends
to be reinvested in so this is the easiest way to check everything obviously you can go into each of
those individual companies and you can manually check the drip program and stuff like that but
this is the easiest way to just see everything at the same time so if you guys do want to activate
the drip then go in here and then you can just activate each individual company or not based on
what you want to have happen whenever you receive dividends because if the drip is activated it's
going to trade on the next day and it's going to buy more shares of that company with your dividend
as soon as it can and that's all there is to it that's what you need to know about the dividend
payments on the robinhood app and that's how you can tell when you're going to get paid them and
how they're actually coming into your account now if you just happen to find this channel
i'm jason with honest finance and i make a lot of videos on different topics that'll give your life
and your finances more value so if you do have an interest in this type of content
feel free to subscribe but for now i am going to leave another playlist over here with a bunch of
different robin hood videos that you guys can watch if you want to learn more about different
topics in the investing side of things but thank you for watching have a great day