The Depository Trust Company's (DTC) Dividend Service facilitates the announcement, collection, allocation and reporting of dividend, interest and certain principal payments for those securities at DTC, as well as foreign shares eligible at the depository but held in custody by DTC with local custodians or depositories.

Overview

The Depository Trust Company's (DTC) Dividend Service facilitates the announcement, collection, allocation and reporting of dividend, interest and certain principal payments for those securities at DTC, as well as foreign shares eligible at the depository but held in custody by DTC with local custodians or depositories. This centralized processing spares participants the burden of dealing with thousands of paying agents. The Dividend Service also offers several additional products, such as dividend reinvestment, foreign currency payments, and optional dividends and tax relief at source. These services are available through DTC's Participant Terminal Service (PTS) and Participant Browser Service (PBS).

Who Can Use the Service

All DTC participants are eligible for the service.

Benefits

DTC's Dividend Service provides cost savings and convenience by:

Eliminating the burden of securing timely payment directly from paying agents.

Providing timely, accurate distributions of dividend and interest.

Reducing manual processing.

Reducing risk and exposure.

Providing an array of information and processing services for which outside agencies were formerly used at a higher cost.

Enabling qualifying beneficial owners to obtain tax relief "at-source" or via quick conditional refund on certain foreign source income payments.

Providing tracking and information services via PTS and PBS.

How the Service Works

Using DTC's Dividend Service, participating organizations can:

Receive and track dividend, interest, and amortized principal payment information, and collect the distribution of all dividend and interest allocations.

Electronically inquire about income processing transactions within DTC's Dividend Service.

Receive and view principal and interest adjustments on certain collateralized mortgage obligation (CMO) and other Asset-Backed Securities (ABS) settling at DTC in the period between the accrual end date (beneficiary date) and the corresponding payable date.

Receive interest payments on coupons deposited directly with DTC for collection.

Process instructions for Dividend Reinvestment Program (DRP)-eligible securities.

Receive interest payments in the currency that foreign certificates are denominated in, instead of U.S. dollars.

View and process disbursement instructions for optional dividend announcements.

Receive income payments net of the favorable, unfavorable, or exempt rate(s) of foreign withholding tax or via a quick refund.

View withholding tax information through PBS and the TAXI PTS function.

Receive and view the tax classification of dividend payments.

Receive income payments net of proper non-resident alien (NRA) withholding tax.

For More Information

Please contact Relationship Management at 800-422-0582.