Dividend Election

Dividend election is an option where you can elect how you wish to receive your dividends for stocks and mutual funds. You can turn automatic dividend election on or off at the account level only; that is, you cannot choose which dividends to reinvest. Dividend election is disabled by default for stocks; however it is automatically enabled for mutual funds. For more information please click here.

For Mutual Funds the change is not effective until the 5th business day of the following month.

Rules

• Dividend Election is available to IB LLC, IB CAN, and IB UK clients only.

• Only US and Canada listed common and preferred stocks are eligible for Dividend Election.

• On the morning of the trading day following confirmation of the our receipt of a dividend payment on a stock or a mutual fund, we will use the dividend payment (or cash-in-lieu of dividend payment if you have a margin account and your shares are on loan at the time of the dividend payment) to purchase additional shares of that stock or mutual fund.

• We will charge our customary commission for the purchase.

• Purchased shares will be allocated to clients on a pro rata basis (based on the dividend amount to which each participating client is entitled). In the event that the purchase executes in multiple smaller trades, you will receive the weighted-average price of such shares.

• If your account is in a margin deficit and can’t initiate new positions, dividends will not be reinvested, even if you have dividend reinvestment enabled.