ETrade Australia has introduced automatic dividend crediting which allows investors' share dividends to be automatically transferred into their cash management account.
The automatic dividend crediting enables ETrade investors to receive their dividend payments sooner, maximise their interest and easily record their dividends, according to ETrade managing director John Daly.
"ETrade customers can now have all dividends for their E*TRADE holdings, both current and future, simply and conveniently directed to their ETrade ANZ Cash Investment Account," he said.
"Up to this point, all share dividends were issued by cheque or by contacting each individual registry and at varying times of the year, causing work for shareholders in both keeping track of payments and gathering details at tax time."
The offering now eliminates this large administrative burden placed on shareholders, Daly said.
"The key thing for most investors is making the cheques and money all go to the same place. Very active traders can now spend more of their time trading rather than filling out forms."
Along with the elimination of posted dividend cheques, the offering will also allow annual investor reports and company communications to be sent to customers electronically rather than by post, Daly said.
