As a seasoned investor, you eagerly await dividend payouts from your wisely selected stocks. Groww, a prominent trading platform, makes it hassle-free to manage your investments and track dividend payments. This article delves into the nuts and bolts of dividend crediting in the Groww app, ensuring you don't miss out on these crucial cash inflows.

How Dividends are Paid Out

When a company decides to share its profits with its shareholders, it does so through dividends. These payouts can be in the form of cash, stocks, or even additional shares. The company's board of directors determines the dividend amount and payment schedule.

Dividend Crediting in Groww App

1. Dividend Declaration:

   • Companies announce dividend payouts in advance, typically through press releases or regulatory filings.
   • Groww promptly updates its platform with this information, ensuring you're well-informed about upcoming dividend payments.

2. Dividend Payment Date:

   • Each company has a specific date set for dividend payments. This information is readily available on Groww's platform.
   • Mark your calendar or set up reminders to keep track of these important dates.

3. Dividend Crediting Process:

   • On the designated dividend payment date, Groww credits the dividend amount directly into your trading account.
   • You'll receive an email and/or push notification informing you of this credit.
   • The credited amount reflects in your account balance, ready to be withdrawn or reinvested as per your preference.

Accessing Dividend Information in Groww App

1. Portfolio Section:

   • Head to the 'Portfolio' section within the Groww app.
   • Select the stock for which you want to check dividend information.
   • You'll find details such as dividend yield, upcoming dividend dates, and historical dividend payments.

2. Transaction History:

   • To view a record of your dividend payments, navigate to the 'Transactions' section.
   • Filter by 'Dividend' to see a comprehensive list of all dividend credits in your account.

Frequently Asked Questions

1. Can I withdraw the dividend amount immediately?

   • Yes, once the dividend is credited to your Groww account, you can seamlessly withdraw it to your bank account.

2. How are dividends taxed?

   • Dividend income is subject to taxation as per your income tax slab. Consult with a tax professional for specific details.

3. What if I sell my shares before the dividend payment date?

   • If you sell your shares before the dividend payment date, you will not be eligible to receive the dividend for those shares.

4. Can I reinvest my dividends automatically?

   • Yes, Groww offers a 'Dividend Reinvestment Plan' (DRIP). This feature allows you to automatically reinvest your dividends in the same stock or a different one.

5. Where can I find more information about dividend payments?

   • You can find detailed information about dividend payments, including historical data and payout ratios, on reputable financial websites and the company's official website.