Robinhood Dividends Explained

hey how's it going everyone so today I want to share with you how to actually receive dividends on Robin Hood so whether you've been using the platform for just a little while or want to get into it but want to understand how it's all utilized this is gonna be the video here for you today now we're gonna be talking about dividends as it's actually one of my favorite ways to be investing so I want to share with you how you can actually be receiving dividends and to make things super easy Robin Hood kind of does it all for you but I want to take you through the steps and how it all works so you have a full understanding of dividends on Robin Hood so what we're gonna do is go ahead and load up my portfolio right over here so I'm sitting a little under seven hundred dollars because the market didn't do so well as of this recording but what we're gonna do is look at a couple different things when it comes to dividends now in case you didn't know dividends can sometimes be paid out on a monthly basis quarterly basis semiannual or even once a year and some companies don't even pay out a dividend so in order to find out if a company actually does pay out a dividend what you can do is a couple different things if you own some stock you'll see it in your stock section so we can click on one of those if you have a watch list you can do that or you can do the search and type in any given company and we can learn and find out if they pay out a dividend so what we're gonna do is just go ahead and go into one of our stocks we already have which is Microsoft and we're gonna go ahead and scroll down here just a little bit in the stats section now in the stats you're gonna see a lot of information at the open you can see the high and low for the day you can see the 52-week high and low the volume average volume and then the p/e ratio market cap but then that very bottom right hand corner you're gonna see a thing that says div slash yield that is the dividend yield now what that is telling us is that this company does payout a dividend it doesn't tell you the frequency unfortunately on this page but you can always find out this information on other websites one of my personal favorites is called seeking alpha calm they give you a lot more of a breakdown on the different things when it comes to how often a company pays on their actual dividend yield but here on a Robin Hood we can at least see that they are paying out a dividend now that 1.09 is a percentage of how much you're getting paid out in a dividend based off of the stocks price now of course this means that because stocks do fluctuate in cost that the yield is actually going to change at that in time as well now it doesn't update instantaneously here on Robin Hood which again is a great reason to go look on other websites to find the direct information when it comes to how much of a yield they actually pay you so knowing this information can give you a really great insight so what we're gonna also do now is look at another company that isn't paying a dividend yield so you can kind of see what that looks like we're gonna go into FB which is Facebook a lot of you guys of course know this company so if we look into the stats you can see on the bottom right hand corner down there and the stats it says div slash yield and there is just a line through it which means this company does not pay out a dividend now that doesn't mean it's not a good company to invest in of course you got to do all that extra researcher on your own but if you are somebody who is interested in getting dividends for your money that you're investing with this will at least be a quick easy way to find out if a company pays out dividends or if it doesn't so really quick before we continue on with the rest of this video if you are getting some value out of this content do me a solid and hit that like button down below helps out the video and the channel overall and if you got any questions let me know in the comments down below whether I answered it in this video or maybe you have a question because of something I talked about in this video I will do my best to answer those for you down below so with that being said let's go ahead and hop back into the rest of this content now what we're gonna do is gonna go ahead and go back into our main portfolio section here and I do have people ask me this every once in a while and they say hey when I get paid out a dividend where does this money go now the easy answer is it goes directly into where it shows you your buying power which is right over here you can kind of see your buying power overall now that's where your money will go but then maybe you're not understanding how much you're getting in dividends and you know when you're expected to earn your dividends and that's the important part - we want to show you you know why your dividends are coming in because of how many shares you own in a company and also to when they're coming in as well so what we're gonna do is click on that little person icon on the bottom right and then we're gonna go ahead and go to statement and history now right now is if this recording the way this is set up you're gonna see in your recent history just a couple lines of actions that are going on in your portfolio which means that it might not tell you exactly you know when you got paid out a dividend because you might have some buys and sells and some other things going on so what we have to do is hit that show more button right down here and what this is going to do is gonna give us a lot more options and you can see here at the very top it's gonna have a couple different things and it's currently clicked on all history and then there's options where you can filter through just orders transfers dividends which is what we're gonna look at right over here so if we go ahead and click on dividends we're gonna see a couple things change here but the main thing is at the very top we're gonna see some pieces of information here so first it's gonna tell us the pending dividends that we're getting and this is a really cool thing so if you have a dividend that you own and they announced the payout that they're gonna give Robin Hood knows that once you have ownership in that company by a certain date they can tell you ahead of time that you're going to be earning that dividend so you can see here I have two pending dividends so this money is not yet in my buying power but I can expect this money to come in and it'll tell me the date of when I can expect them so first you can see at the very top there I have that Microsoft stock we just talked about I'm gonna be earning a 51 cents from this and if I click on it it'll actually tell me that I have one share with them and it's expected that this money will be deposited into my account on March 12th so that makes it really easy and then right after that I have Ford now Ford I'm getting a dollar and 35 cents from and you can see here it's because I own nine shares at fifteen cents a piece making it that total of a dollar thirty five so now I know and understand when that money's coming in and how it's gonna go into my portfolio again is that it's going to go into my buying power but knowing ahead of time can be really strategic if you want to make sure that you're utilizing your money the right way now what you can do as well too is you can see in the past thirty days they'll tell you how many different dividends you've had so I had nrz pay me six dollars back on January 31st because I had a total of twelve different shares with them at 50 cents apiece and if I go back I can look at my older activity and just go all the way through all the different dividends I've earned on Robin Hood so this will go far back for you so if you've been on Robin Hood for maybe a while you can go back and see all the dividends you've actually already earned maybe without even knowing it so again this is gonna be really good information to know so that way you have an understanding of where dividends are coming in from so that way either you can readjust your investments if you want to invest more heavily in certain types of stocks because maybe they pay you better in dividends or maybe pulling your money out because maybe it's not paying as good of a dividend as you would like so that is essentially how that dividend works again it's gonna go into your buying power right over there and then write that in there on the day that you received that money you will have instant access to be able to start buying other things with it now you know as you saw here getting dividends of you know 51 cents 60 cents 6 cents all these different little amounts doesn't seem like a lot but over time and of course we'll build up and as you start having more shares into these companies that you're investing in and getting paid out dividends that money is going to start accumulating and equaling out to a lot larger amount so you can start reinvesting and the nice thing is at least as of this recording fractional shares are coming soon to Robin Hood which means that you'll be able to buy into smaller portions of shares that you already are having ownership in or want to have ownership in and not having to put the full fledge dollar amounts so that means you'll be able to buy in and be able to earn in fractional dividends in a short amount of time and that's really exciting and I know some people out there already have this feature so it's really awesome that they are getting that access right away and then more of us are gonna have that access down the road now I go over some more detailed information when it comes to utilizing Robin Hood to its fullest extent so I want you to check out the video right over here so you can keep on learning and growing with your Robin Hood portfolio thank you so much for watching and I'll see you in the next video

Channel: TruFinancials

Views: 47,088

Keywords: TruFinancials, Robinhood, robinhood app, robinhood investing, robinhood investing for beginners, robinhood app review, robinhood dividend, robinhood dividend investing, robinhood dividend payouts, robinhood dividends explained, robinhood dividend yield

Id: nOFbXS0UXi0

Length: 7min 59sec (479 seconds)

Published: Mon Mar 16 2020