dividend calendar distribution

Dividend Calendar Tools Help Pooled Investment Industry Navigate Tsunami of December Distribution Events

Dividend payouts can quickly snowball, creating a perfect storm of events that create opportunities for missed distribution events and make employee time allocation difficult, especially during December and the holiday season.

For financial institutions facing this annual challenge, there are tools available that help institutions manage and get ahead of these payments, while enabling them to more effectively manage personnel, minimize mistakes, and ensure all declared periodic dividends on their book of business are received.

Benefits of Online Dividend Calendars

Online dividend calendar tools enable banks, record keepers, broker dealers, insurance companies, and financial professionals in the pooled investment fund industry to manage the overwhelming 30,000+ periodic distribution events in December, as well as those scheduled for the rest of the year.

All-encompassing annual calendars track every fund’s payout and enable exact income processing for trust companies, recordkeepers, and broker dealers. These calendars alert users to payouts in advance by projecting forward all dividend events over the next 13 months. Of course, many of the expected events in the future are estimates based on prior history, but the closer you get to the ex-date, the more accurate the projection. When the ex-date comes around, all expected dividends have been confirmed directly with the funds This provides institutions with a confirmed list of all dividends paid on ex-date to ensure they received the dividend rates required to be posted to their shareholder accounts.

Another ancillary benefit of the dividend calendar is the ability for back-office teams that deal with high volumes to load-balance their processing team by knowing how many projected events will be processed each day.

Consequences of Missing Dividend Payment Dates

Missing a dividend can have catastrophic financial consequences in today’s omnibus trading environments, in addition to reputational risk when the client statements and reporting require reworking once missed dividends are incorporated. There is very real financial risk where a fund has both reinvest shareholders and cash dividend shareholders holding shares in a single omnibus account.

A missed dividend means a missed buy-back or a missed sale of shares, leading to market exposure when the sell-off or buy-back trade is finally made. This is especially risky when you have a lot of market volatility.

Features of Online Dividend Calendars

  • See all dividend schedules and annual security events in an easily accessible online calendar format
  • View daily, weekly, and monthly payouts by fund complex, dividend type, or for a specific security
  • View daily exceptions and receive alerts when projected dividends have yet to be received by a certain time of day or the expected dividend type differs from that received
  • View only the dividends applicable to the funds held by your customers. Dividends for funds not in your book of business are filtered out to eliminate the noise.

Get Help With Managing Upcoming Dividend Dates & Distribution Events From Delta Data

Tools like online dividend calendars can be invaluable for firms when facing such onslaughts as December distribution events. It’s important for financial institutions to explore all the tools available in order to minimize risk and error while facilitating a more seamless client experience.

Get help with managing that tsunami of 30,000+ periodic distribution events in December by reaching out to Delta Data to learn more about our dividend calendar as well as our Data as a Service (DaaS) offerings that can provide you with all the declared dividend rates on ex-date with capital gain and ordinary income breakdown.