All dividends you receive through Hatch are paid out in USD into your Hatch account. You can choose to reinvest them by buying more shares, or to withdraw them whenever you like.
Note: We can't offer a Dividend Reinvestment Plan (DRIP) just yet, so dividends you receive through Hatch can't be automatically reinvested. You can let your dividends stockpile in Hatch and auto-invest them, or add them to another order and buy more shares.
There are two types of dividends you might receive through Hatch.
1. Company/ETF dividends
Some companies pay their shareholders dividends every quarter while others pay annually. If you’re a shareholder of a company paying a dividend, this money gets paid into your Hatch account and stays in USD until you choose to reinvest it or withdraw it. For fractional shares, you’re paid in proportion with the percentage of shares you own. All your US tax requirements are sorted for you before the dividend hits your Hatch account.
2. Money Market Fund dividends
Any spare cash you have sitting in your Hatch account is swept into an overnight Money Market Fund (find out more here). The fund pays monthly dividends into your Hatch account and stays in USD until you choose to withdraw it.
You'll see the transaction in your transaction history. Any dividends the fund pays will appear in your account at the beginning of the month. the transaction will show up as 'MONEY MARKET FUND [DATE] DIVIDEND'.