Dividends & DRIP

What is a dividend?

A dividend is a payment made by a corporation to its shareholders, typically as a distribution of profits. It can be issued in cash or as additional shares of stock. Dividends are usually paid on a regular basis, such as quarterly, and can provide a source of income for investors.

When do I need to buy the stock to be entitled to a dividend?

To be entitled to a dividend, you typically need to purchase the stock before the ex-dividend date. The ex-dividend date is usually set one business day before the record date, which is when the company checks its records to determine who will receive the dividend. If you buy the stock on or after the ex-dividend date, you will not receive the upcoming dividend payment.

When will my dividend be credited to my account?

Dividends will be credited to shareholders of record 1-2 business days after the payment date. To view your dividend payment, please use the following instructions:

App:

1. Navigate to Account ➝ History
2. Select the dropdown filter and tap Dividend Records.

Desktop:

1. Navigate to Account (if hidden, click More).
2. Within the Banking widget, click the dropdown filter right of Type.
3. Select Dividends.

What is DRIP and how does it work?

Webull’s Dividend Reinvestment Plan automatically reinvests eligible dividends into additional shares of the same stock.

You can choose to apply DRIP to all eligible securities in your account or select specific stocks for automatic reinvestment. Securities not selected for DRIP will not be included in the service. Purchases under the DRIP are made through open market transactions, typically on the first trading day after you receive a DRIP-eligible dividend for that security.

Is it free to participate in DRIP?

Yes, there is no additional fee to participate in DRIP.

What accounts are eligible to participate in DRIP?

Any self-directed account is eligible to participate in the dividend reinvestment program. Eligible account types include Individual, Joint, Retirement, and Entity accounts. Advisor accounts are not eligible for DRIP.

Which securities can be enrolled in DRIP?

Eligible securities are generally marked with a green diamond icon on their quotes page, which indicates support for fractional share trading and is required for DRIP enrollment. However, not all securities with this icon are eligible. After purchasing a security, you can check its eligibility on the DRIP enrollment page. Webull reserves the right to determine or change the eligibility of a security for DRIP at any time without prior notice.

How do I enroll or opt-out of DRIP?

App:

1. Tap the Webull logo ➝ Account Management ➝ Dividend Reinvestment Program.
2. Choose to enroll, opt-out, or modify your selected securities.

Enrollment and opt-out requests are typically processed within 1 business day. Adding or removing individual securities may take up to 5 business days to take effect.

Why was my cash dividend not reinvested?

There are several reasons why your cash dividend may not have been reinvested:

1. The cash distribution must be more than $1 and sufficient to buy at least 0.00001 shares. Otherwise, it’s credited to your cash balance.
2. Some payments like cash-in-lieu and special dividends are not DRIP-eligible.
3. Your request to change your DRIP status has not been processed yet.
4. There’s an active Required Maintenance (RM) or Regulation T (RT) call, which means insufficient funds are available.
5. Cash buying power (cash accounts) or available to withdraw balance (margin accounts) is below the dividend amount.

DRIP still functions during Equity Maintenance (EM) calls, Good Faith Violations (GFVs), or Day Trading (DT) calls — as long as sufficient funds are available.

Are ETFs eligible for DRIP, and how are they priced?

Yes, some ETFs are eligible for DRIP. Reinvestments are made at the market price, not at the fund’s Net Asset Value (NAV).

Note: Leveraged or highly volatile ETFs (such as TQQQ or SQQQ) are not eligible for DRIP, even if they allow fractional share purchases.

When is my DRIP order executed and when will it show up?

DRIP transactions are typically executed on the dividend credit date around 10 AM EST. However, the reinvested shares may not appear in your account until the next business day.

Where can I view DRIP transaction details?

DRIP-applied dividends do not appear in Order Records. However, you can check them here:

App:

1. Tap the Webull logo to select your account.
2. Select History ➝ Order Records ➝ Fund Records.

App:

1. Tap the Menu button in the bottom right.
2. Select Settings ➝ Account Management ➝ Dividend Reinvestment Program.
3. Tap on a Symbol to view the Order History.