Dividend Service

Overview

DTC's Dividend Service facilitates the announcement, collection, allocation and reporting of dividend, interest and certain principal payments for those securities in DTC custody, as well as those foreign ordinary shares eligible at the depository but custodied by DTC with local custodians or depositories. This centralized processing spares participants the burden of dealing with thousands of paying agents.
The Dividend Service also offers several additional products, such as dividend reinvestment, foreign currency payments, and optional dividends.

Who can use the service

All DTC participants are eligible for the service Benefits DTC's Dividend Service provides cost savings and convenience by:

Eliminating the burden of securing timely payment directly from paying agents
Providing timely, accurate distributions of dividend and interest
Reducing manual processing
Reducing risk and exposure
Providing an array of information and processing services for which outside agencies were formerly used at a higher cost

How the service works

Using DTC's Dividend Service, participating organizations can:

Receive and track dividend, interest, and amortized principal payment information, and receive the distribution of all dividend and interest allocations
Electronically inquire about all income processing transactions within DTC's Dividend Service
View and track income associated with Fails, Stock Loans, and Repurchase Agreements, with any necessary adjustments automatically made to a participant account for associated distributions
Receive and view principal and interest adjustments on certain collateralized mortgage obligation (CMO) and other Asset-Backed Securities (ABS) settling at DTC in the period between the accrual end date (beneficiary date) and the corresponding payable date
Receive interest payments on coupons deposited directly with DTC for collection
Process instructions for Dividend Reinvestment Program (DRP)-eligible securities
Receive interest payments in the currency that foreign certificates are denominated in, instead of U.S. dollars
View and process disbursement instructions for optional dividend announcements
Receive income payments net of the favorable, unfavorable, or exempt rate(s) of foreign withholding tax or via a quick refund
Receive and view the tax classification of dividend payments
Receive income payments net of proper non-resident alien (NRA) withholding tax

For more information:
Please contact Relationship Management at (212) 855-4155.