I am considering to RSP 100 USD for VOO through FSMOne. However, I saw the min USD2.50 dividend handling fee. What will happen if my dividends are less than the dividend handling fee? - Seedly
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Anonymous

Asked on 29 Jun 2020

I am considering to RSP 100 USD for VOO through FSMOne. However, I saw the min USD2.50 dividend handling fee. What will happen if my dividends are less than the dividend handling fee?

Did some calculations, and it is likely that by the first quarter my dividends would be lesser than USD2.50. Will I just not get the dividends or will they charge me the remaining fees?

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Tan Wei Ming
Tan Wei Ming, Writer at Frugal Youth Invests
Top Contributor

Top Contributor (Jul)

Level 7. Grand Master
Answered on 29 Jun 2020

If your dividend after tax is less than $2.50, u will not receive anything. You do not have to pay any money to them.

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Hey, I had the same question before too!

Short answer You don't get any dividends.

What I was worried (And you might be too)

Scenario: let's say you get a $2 dividend but you're charge min $2.50, do they just charge $2 or do you get charged additional $0.50? Turns out they only charge $2 and absorb the additional costs.

On the bright side, max charge of $25 for dividends though! I called them and asked, their hotline is 6557 2853 if you wanna double-check. If you found this helpful, please show some love to my personal finance youtube channel as a dividend for lending you a hand ;) Stay safe!​​​

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Billy Ko
Billy Ko, Analyst at ClubMed
Level 7. Grand Master
Updated on 29 Jun 2020

If your dividends are less than the dividend handling fee, not to worry, you don't need to pay FSMOne the remaining fees. They'll just absorb your dividends

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