For funds on an annual dividend payment cycle, the dividend ex-date is the next business day following the third Friday of December, payable the last business day of the year. The backup withholding rate is currently 28%.ĭividends from net investment income, if any, are declared and paid either annually, quarterly or monthly, depending on the Fund. A distribution will reduce the Fund's net asset value per Share and may be taxable to you as ordinary income or capital gain even though, from an investment standpoint, the distribution may constitute a return of capital.īy law, the Fund must withhold a percentage of your distributions and proceeds if you have not provided a taxpayer identification number or social security number. In addition, some ordinary dividends declared and paid by the Fund to individual shareholders may qualify for taxation at the lower reduced tax rates applicable to long-term capital gains, provided that holding period and other requirements are met by the Fund and the shareholder.ĭistributions in excess of the Fund's current and accumulated earnings and profits are treated as a tax-free return of capital to the extent of your basis in the Shares, and as capital gain thereafter. Under the provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the '2003 Tax Act'), long-term capital gains tax rates have generally been reduced for individuals to a maximum of 15% for taxable years beginning before January 1, 2009. The Fund may also pay a special distribution at the end of the calendar year to comply with federal tax requirements. Dividends from net investment income, if any, are declared and paid quarterly. Distributions of net long-term capital gains, if any, in excess of net short-term capital losses are taxable as long-term capital gains, regardless of how long you have held the Shares.

Dividends paid out of the Fund's income and net short-term gains, if any, are taxable as ordinary income. In general, your distributions are subject to federal income tax when they are paid, whether you take them in cash or reinvest them in the Fund. If this service is available and used, dividend distributions of both income and realized gains will be automatically reinvested in additional whole shares of the fund purchased in the secondary market. Brokers may require shareholders to adhere to specific procedures and timetables. Shareholders of the fund may contact their broker to determine the availability and costs of the service and the details of participation. The fund distributes its net realized capital gains, if any, to shareholders annually.ĭistributions in cash may be reinvested automatically in additional whole shares of the fund only if the broker through whom you purchased shares makes such option available.

For Funds on a quarterly dividend payment cycle, the dividend ex-date is the next business day following the third Friday of each March, June, September and December, payable the last business day of April, July, October and December respectively.

Dia etf jan 2017 ex dividend