If you want to reinvest the dividend, that might make sense for you. The net amount—that is, after taxes and the solidarity surcharge have been deducted—is reinvested accordingly. With Rio Tinto, the reinvestment takes place on-market; no new shares are issued. The price is announced after the ex-dividend date and is usually an average price calculated over several trading days around that time. You’ll either receive a separate notification from your broker or can check Rio Tinto’s investor relations (IR) page to see what the price is—it often includes a small discount. You can then decide whether this is of interest to you; that’s why you still have a little time after the ex-dividend date to submit your instructions. This is only necessary if you actually want to reinvest. If you do nothing, the dividend will be paid out automatically. Check to see if you’ll have to pay trading fees—that often makes the whole thing unattractive.
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@Dividendenopi Thank you so much for your detailed response. It's really helpful 👍🏻
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