M1 offers several options for routing your cash dividend payments.
Add to your portfolio's cash balance
This is the default option for dividend payments. Paid dividends will collect in your cash balance. Just like with a normal deposit, funds in your cash balance will be invested according to your Auto-invest settings and minimum cash balance.
Reinvest into the underlying security
Cash dividend payments of at least $1 will be automatically reinvested back into the investments that paid them, regardless of your investments' target percentage allocations. Dividends worth less than $1 will be added to your cash balance as described above.
Sweep to an M1 High-Yield Cash Account
Dividend payments of at least $1 will be automatically transferred to a High-Yield Cash Account.
Not available in Retirement Accounts.
Customize per security
Customize your dividend handling method by symbol.
To change your dividend handling settings:
Web
Navigate to the Portfolio tab of your investment account
Scroll down to the Automation area beneath your Pie
Select Dividend handling
Mobile
Navigate to the Portfolio tab of your investment account
Swipe up from the bottom of the screen
Tap Dividend handling
Which dividends are eligible for reinvestment?
All cash dividends of at least $1 are eligible for reinvestment.
What dividends can be swept into a Cash Account?
Only cash dividends paid into a general margin account can be swept to a Cash Account. Dividends paid to Traditional IRAs, Roth IRAs, SEP IRAs, and Trust accounts are not eligible to be swept.
My Dividend was not reinvested?
Currently, our Dividend Management workflows don't process dividends marked as a Return of Capital Dividend, these go through our normal cash handling processing which treats these as cash credit events.
These dividends will be marked as ‘Dividend Adjustment Credited’ within the activity tab.
Brokerage accounts on the M1 platform are either fully disclosed to APEX Clearing or cleared through M1 Finance LLC. Please look at your account statement to determine how your account is cleared.
All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future performance. Using margin can add to these risks. Users utilizing APEX cleared margin accounts should review the APEX margin account risk disclosure before borrowing. Users utilizing M1 cleared margin accounts should review the M1 margin account risk disclosure before borrowing. M1 Margin Loans are available on margin accounts with at least $2,000 invested per account. Not available for Retirement or Custodial accounts. Margin rates may vary.
Brokerage products and services are offered by M1 Finance LLC, Member FINRA / SIPC, and a wholly owned subsidiary of M1 Holdings, Inc.
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