If a client is eligible to receive a dividend, an accrual for the expected dividend amount will usually be posted to the account on the ex-dividend date. Once the dividend funds are received from the relevant depository, clearing agent or paying agent, the accrual will be reversed and the dividend will be credited to the account’s cash balance. This usually takes place on the announced payment date. However, if the funds are not received or allocated on time, the dividend may remain in an accrued state until processing is completed. Clients can track expected dividend payments by generating a custom activity statement that includes the Open Dividend Accruals section. This section shows information such as the expected payment date and dividend amount.
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