How To Buy Dividend Stocks On Wealthsimple [2024 Tutorial]

Dividend investing has long been a favoured strategy for many investors, offering a consistent and potentially growing stream of income.

The process may seem daunting for Canadians looking to build a portfolio that includes dividend stocks. However, platforms like Wealthsimple Trade have simplified this investment avenue, making it super accessible to both new and seasoned investors.

Below, you’ll find an easy step-by-step guide that walks you through how to buy dividend stocks on Wealthsimple, helping you start your journey toward earning steady dividends.

Whether you’re interested in well-known blue chip companies or smaller dividend-paying firms, this tutorial has got you covered.

Can You Buy Dividend Stocks on Wealthsimple?

Yes, Wealthsimple Trade users can directly invest in a variety of dividend-paying stocks with companies like RBC, Scotiabank, Microsoft, Apple, Coca-Cola, Target, and so many more.

So whether you are looking for established companies known for steady dividend payouts or emerging businesses with growing dividends, Wealthsimple Trade’s platform offers you a wide array of options.

Not only does Wealthsimple Trade offer a long list of dividend-paying stocks you can invest in, but they also make it very (and I mean very, very) easy to invest in them, which I’ll now show you in the next section.

How To Buy Dividend Stocks On Wealthsimple

Now that we know you can buy dividend-paying stocks on Wealthsimple, let’s explore exactly how to do it with in a step-by-step guide.

Whether you’re on a desktop or mobile device, the process remains essentially the same, but for the sake of this tutorial, I’ll be buying a share of RBC (RY.TO) ^[1] on the desktop version.

Ready to dive into the world of dividend investing?

Let’s get started!

Step #1 – Login To Your Wealthsimple Trade Account

You’ll begin by logging in to your Wealthsimple Trade account. If you’re not already a user, signing up is a simple process that takes about 15 minutes.

Step #2 – Search for the Dividend Stock You Want to Invest In

Once logged in, search for the dividend-paying stock you want to purchase. You don’t have to put in the ticket symbol either – you can just use the company name as seen in the image below.

As mentioned, I’m buying RBC (Royal Bank of Canada).

Step #3 – Input the Number of Shares You Want to Purchase and Click Buy

Now on the RBC trading page, I’ll enter the number of shares I want to buy.

As of August 2023, RBC’s stock is trading at around $120 per share, so buying ten shares would cost roughly $1200.

So I’ll enter the desired quantity and click “Buy RY.”

Note: Wealthsimple Trade also provides options for market buying, fractional buying, limit buying, and stop-limit buying. Choose the best option based on your investment strategy. To learn more about each order type, you can check out Wealthsimpe’s help center article here.

Step #4 – Review Purchase Details and Confirm the Order

Check your purchase details, and if you’re satisfied, click “Confirm order.”

For the sake of this article’s demonstration, I am just buying $1 worth of RBC through a fractional buy order type.

Note: Wealthsimple doesn’t charge any commission fees, but if you are buying an American stock, like Tesla or Apple, you will be charged what’s called a conversion conversion fee. But because RBC is a Canadian company, these conversion fees don’t apply so it costs me nothing in fees to make this investment.

Learn more about Wealthsimple Trade’s fees in my in-depth article here.

Step #5 – Click Done

Once you submit your order, simply click “Done” or “View order status.”

Once your order is officially filled, you’ll get an email confirmation like this (different order details, of course):

And that’s it! Congrats on owning a dividend-paying stock!

Do you get dividends through Wealthsimple?

Yes, if you invest in dividend-paying stocks on Wealthsimple, your dividend payouts will be automatically deposited into your account, where you own the stocks that pay the dividends.

For example, if you own 30 shares of Apple in your TFSA with Wealthsimple Trade, any dividends you receive from Apple will be deposited into your TFSA in the form of Cash.

Related Article by Noel: Wealthsimple TFSA vs Personal Account | Simple Comparison

Wealthsimple also incorporated a dividend reinvestment (DRIP) ^[2] feature into their platform, where you can turn on a setting where your dividends automatically get reinvested into the stock that provided you with the dividend payout.

I personally don’t yet have this setup, as you can see, but it’s a good option if you want to automate your compound growth.

Trade

Noel’s Take on Wealthsimple Trade

Due to its low costs, diverse investment options and overall ease of use, I think Wealthsimple Trade is Canada’s best self-directed online brokerage platform, and I would give it a score of 4.5/5.

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FAQS About Buying Dividend Stocks