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Can I participate in corporate actions?
Can I participate in corporate actions?
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Written by François
Updated over a week ago

Yes, when you trade via the Invest 2.0 Pocket, you may be eligible to participate in certain corporate actions. As soon as we receive the necessary information from our custodian, we’ll notify you of any corporate actions that affect the instruments in your portfolio. We’ll request your input if it’s necessary to take action.

Currently, Vivid Money B.V. only facilitates cash- and stock dividends and direct/indirect stock splits as corporate actions through the Invest 2.0 Pocket. Further types of corporate actions will be supported in the near future.

Does Vivid Money B.V. pay dividends?

Yes, if you are entitled to receive dividends, they will be credited to your account within 2 business days after Vivid Money has received these from the issuer.

Kindly note that taxation will, in most cases, already be withheld by the issuing company and can be reclaimed in your annual tax return. Dividend tax is levied on companies that pay dividends to their shareholders. In the Netherlands, these companies must withhold a 15% dividend tax from the dividend payment and pay it to the authorities. Dividend income from shares in the United States is typically subject to a withholding tax rate of 30%. However, the Netherlands has established a treaty with the US that enables this withholding tax rate to be reduced to 15%.

How do dividends work with accumulating and distributing ETFs?

The dividend payout will differ depending on the ETF:

  • With accumulating ETFs (ACC), the fund manager reinvests any paid-out dividends into the fund without any additional cost.

  • With distributing ETFs (DIST), dividends are paid out to investors. This is, you’ll receive cash flow that can be used as per your preference.

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