how is dividends paid out if you own shares?

Answer 1

If you own shares of stock in a company that decides it will announce dividends, there are three dates you need...
The first is the announcement date. That is when they say how much they are paying and when. The second is the date the actual dividend is declared. You need to own your share on this date to get the dividend. If you buy your share the day before, you get the money. If you sell your share the day after, you still get the money. The third is the payment date. They will send a check.
If your stocks are at a broker, they may be credited to your account with your broker and then you have to withdraw the money from there.

Answer 2

Dividend is paid out on each share you hold and is usually something like 10p per share. If you have 100 shares £10 is paid direct into your bank account. Sometimes you can opt for a cheque direct to you or use the dividend to buy more shares before you see the money.

Answer 3

A sum of money will be proportioned to shareholders at a companies Annual General Meeting or in their annual accounts. The total sum will be divided by the number of shares that have been issued and then it's worked out from there.
For e.g - they decide to give £200
they've issued 50 shares
Each share would net a dividend of £4

Answer 4

Mine are actually paid to my brokerage account. I have some of them set up to automatically be reinvested into more shares. The ones that can't be reinvested just go into my cash account at the brokerage.

I do know people that actually get a check from the company when they're due a dividend though. It depends on who is holding your shares. In my case, my broker holds my shares so the dividend goes to them. In my friends case, he is holding the shares so he gets an actual dividend check.

I'm in the U.S. I don't know if it's different in any other countries.

Answer 5

When you buy shares, either via a broker or directly, there is a question on the application form asking how you wish your dividend to be paid. Normally, it is paid directly into your bank account,

Answer 6

when you purchase shares whether thru a broker or directly, you indicate a bank account on your application and that is where the dividends are deposited.