I received my first dividend recently and I want to fully understand it.
The notification says:
On 22.05.2020 Nordic American Tankers Limited (NAT) distributed an ordinary dividend of $0.12 per share. You have received £27.46.
The history says:
DATE RECEIVED: 11 Jun 2020
NUMBER OF SHARES: 293
AMOUNT PER SHARE: $0.12
TOTAL AMOUNT: +£27.46
So, 293 shares @ $0.12 = $35.16. According to Yahoo! Finance, the dividend was actually $0.14. For 293 shares, that would be $41.02.
The GBP/USD exchange rate ranged from 1.21 and 1.28 between 22/05/2020 (distribution date) and 11/06/2020 (received date).
I believe 15% tax should be withheld from dividend payments on US stocks.
So given all these pieces, can somebody explain to me how my dividend is calculated? Specifically:
- Why is the “AMOUNT PER SHARE” listed as $0.12 instead of $0.14? If the 15% tax is deducted from $0.14 then that would give $0.119, which would round to $0.12, but it seems unlikely that Trading 212 would handle the tax this way, as the rounding difference would subsequently be multiplied by the number of shares.
- What exchange rate was used to calculate the GBP amount? What date/time of exchange rate was used?
Are there any plans to supplement the amount of information that is shown in the dividend history? I think it should also contain:
- The actual dividend amount (assuming I’m not mistaken above)
- The distribution date
- The total gross dividend in the stock currency
- The tax in the stock currency
- The total net dividend in the stock currency after the tax is deducted
- The exchange rate
- The exchange rate date/time
- The total gross dividend in the Trading 212 account currency
- The tax in the Trading 212 account currency
- The total net dividend in the Trading 212 account currency after the tax is deducted