Will I Receive Dividends on Raseed?

Yes. If you own dividend-paying stocks or ETFs through Raseed and meet the eligibility requirements set by the issuing company or fund, dividend payments will be credited directly to your investment account.

Many investors across Saudi Arabia and the GCC use dividend-paying investments to generate passive income while building long-term wealth. Understanding how dividend eligibility works can help you make more informed investment decisions and avoid missing upcoming payouts.

How Dividend Eligibility Works

When a company announces a dividend, it also announces an ex-dividend date and a record date.

To receive the dividend, you must own the stock or ETF before the ex-dividend date. Investors who purchase shares on or after the ex-dividend date are generally not eligible for that specific dividend payment.

Once the dividend is distributed by the company, the payment is credited to eligible shareholders automatically.

Example

Suppose a company announces:

•Dividend: $1 per share
•Ex-dividend date: June 10
•Payment date: June 30

If you own the shares before June 10 and continue to hold them through the record date, you will generally receive the dividend when it is distributed.

Which Investments Pay Dividends?

Not all investments pay dividends.

Dividend-paying investments may include:

•US dividend stocks
•REITs (Real Estate Investment Trusts)
•Dividend-focused ETFs
•Broad-market ETFs that distribute income

Growth-focused companies often reinvest profits back into the business instead of paying dividends.

For investors seeking income-generating investments, dividend-paying stocks and ETFs can play an important role within a diversified portfolio.

You may also want to read What Is a Dividend? to understand how dividend payments are calculated and distributed.

When Are Dividends Credited?

Dividend payment timelines are determined by the issuing company or ETF provider.

After the company distributes the dividend, the funds are processed through the relevant market infrastructure and then credited to your Raseed account.

Processing times may vary depending on:

•The issuing company
•Market settlement procedures
•Currency conversion requirements
•Applicable tax deductions

For US-listed investments, dividend payments may be subject to US withholding tax depending on your residency status and applicable tax regulations.

Can I Reinvest My Dividends?

Once dividends are credited to your available cash balance, you can choose to:

•Reinvest in the same stock
•Purchase additional stocks or ETFs
•Diversify into other investments
•Keep the cash available for future opportunities

Many long-term investors reinvest dividends to potentially benefit from compounding growth over time.

You may also find our guides on What Is an ETF? and US Dividend Withholding Tax for Saudi Investorsuseful when building a dividend-focused portfolio.

Start Building a Dividend Portfolio Today

Looking for investments that can generate regular income?

Open Your Raseed Account Today and explore dividend-paying US stocks and ETFs directly from one investment platform built for Saudi and GCC investors.