does robinhood total return include dividends

Robinhood has a chart system that provides information concerning an asset over a period of time, like any other brokerage firm. However, not all brokerage firms include information about your dividends in these asset charts. But what about Robinhood?

Does Robinhood total return include dividends?: Yes, the Robinhood Charts include dividends. However, this does not apply to cryptocurrency or option charts, but only to stock charts. Bear in mind, though, that the dividends will not be displayed as a gain percentage, but as a deposit.

In this article, I will go over how to check your dividends on the Robinhood Charts and how to check dividends for cryptocurrency or options. I will also explain how to qualify for dividend payments on Robinhood and how to reinvest your dividend payments.

How Do I Check My Dividends On Robinhood?

does robinhood total return include dividends

Tap on the ‘Account’ tab in the bottom right corner. Then click on ‘Statements & History’. Click on ‘Show More’. Tap ‘Dividends’ on the top of the screen.

Your dividends will be displayed on the screen.

Dividends that have been paid in the last 30 days are shown under the ‘Past 30 Days’ category. Dividends that have already been scheduled but have not been paid will appear in the ‘Pending’ category. 

Tap on any of the sections for more information if you need to.

Understanding Robinhood total return

An individual invests $5,000 in a mutual fund that has an average annual return of 8%. They hold the investment for 20 years, reinvesting all dividends and capital gains. At the end of the 20 years, the investment is worth $23,434.

The investor spent $5,000 to buy the mutual fund at the start of the investment. Over the 20 years, they received $12,434 in dividends and capital gains. When they sold the mutual fund, it was worth $18,000. In total, the investor received $30,434 from their $5,000, giving them a 508.68% total return over the 20 years or 25.43% per year.

*The examples provided are for illustrative purposes only and doesn’t reflect the actual returns of any investment. *

How Do I Check Options and Cryptocurrency Dividends?

For options and cryptocurrency on Robinhood, the dividends are not shown separately but are included in the total returns.

For options, you can see information about your total returns if you have an open options position. You can view this information whether you have a single-leg option or a multi-leg option. To do this, click ‘Details’ in the upper right corner. It will display your total return. This is for mobile app users.

For web users, the information can be seen just below the price chart.

For cryptocurrency, you can see the total returns if you have an open position in a cryptocurrency. If you are using the mobile app, tap Details in the upper right corner. Your total return will be displayed alongside other options.

For the web version, the information is below the price chart.

How Do I Qualify For Dividend Payments On Robinhood?

You must have purchased shares in a company before their ex-dividend date. The ex-dividend date is the day when the stock trades without the subsequent value of the dividend. It always comes one business day before the record date.

The record date is the date when a person must be on a company’s record as a shareholder so he can receive dividends. The one-day difference between both dates is because trades usually settle after one business day.

Hence, you must buy a stock that pays a dividend at least a day before the record date because trades take a day to settle.

You will not receive a dividend if you purchase shares either on or after the ex-dividend date, or if you sell the shares before.

Dividends are paid at the end of the trading day on the designated payment date.

Is My Dividend Payment Permanent In Robinhood?

A dividend payment in Robinhood is not permanent as it can be reversed in the following situations:

  • If the issuer changes the dividend rate for any reason after payment of dividends is made. In this situation, Robinhood will reverse the payment and pay again with the new rate. Users will be aware of this because the reversed dividends will be displayed in the ‘Dividends’ section.
  • If the Depository Trust & Clearing Corporation (DTCC) or the issuer recalls the dividend entirely. This will appear in the ‘Dividends Section and the user’s monthly account statement.

How Does Robinhood Pay My Dividends?

Robinhood pays dividends to its users automatically by using a clearing firm called Apex Clearing. The dividends are paid monthly and quarterly directly into a user’s cash account by default. 

You can turn this option off if you enable dividend reinvestment.

Can I Do Anything Else With My Dividends On Robinhood?

Instead of receiving dividend payments, you can choose to automatically reinvest it back into a stock or exchange-traded fund (ETF) you already have through Robinhood’s Dividend Reinvestment (DRIP) option. 

You can enable (or disable) dividend reinvestment until 12:00 AM on the day the dividend is to be paid. A dividend is reinvested on the trading day after the date of dividend payment.

To enable this option if you use the mobile app, click on the ‘Account’ tab (the icon is shaped like a person). Then click on ‘Investing’. Scroll to the ‘Dividend Reinvestment’ section and tap ‘Enable Dividend Reinvestment’. Switch it on and complete the onboarding process when prompted.

Once you have done this, Robinhood will show you a list of your investments that are eligible for dividend reinvestment. Choose any of them by tapping the circle or checkmark..

If you use Robinhood’s web version, Click on ‘Account’ at the top of the screen. Then click on ‘Settings’, ‘Dividend Reinvestment’ and toggle the switch on. Complete the onboarding process when prompted.

Can I See My Dividend Reinvestments?

Robinhood allows you to see your past and pending dividend reinvestments. You can also see this information in terms of individual stocks or in general terms.

To see your dividend reinvestments on individual stocks, click the detail page of that particular stock. All information about dividend reinvestments is under the ‘Upcoming Activity’ section.

To see the general overview of your reinvestments, click on the ‘Account’ tab if you are using the mobile app. Tap ‘Statements & History’. You will then see all of your Robinhood history, which includes your dividend reinvestments. 

For web version users,  click on the ‘Account’ option at the top, then click on ‘History’. As with the mobile app, your entire Robinhood history will appear on screen, including dividend reinvestments.

Why Are My Dividends Not Being Reinvested?

If you have switched on dividend reinvestment on but your dividends are not being reinvested, it may be because;

  • The stock selected for reinvestment is no longer eligible for such
  • The dividend was reversed or voided
  • The market is closed. In this case, the dividend should be reinvested the next time that the market opens again

Bottom Line: Does Robinhood total return include dividends?

As I told you, Robinhood charts do include dividends, but they will appear as deposits and won’t be calculated in the gain/loss percentage.

Robinhood has provided the means to get almost any information you want concerning your dividends with some amazing technology and features that put them ahead of other brokers in this respect. All you need to do is stay abreast of the information with your phone or your PC.

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