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When a company you hold pays a dividend, Grand doesn’t deliver cash to your balance. Instead, Grand uses a total return model: the dividend value is automatically reinvested into the underlying asset, and the price of your token rises to reflect that reinvestment. Your token quantity never changes — but each token becomes worth more over time.
Because dividends are reinvested rather than paid out, the price of a tokenized stock on Grand will gradually diverge from the raw market price of the underlying equity. The token price will be higher, reflecting all accumulated reinvested dividends.

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How dividend reinvestment works

The following example walks through a full dividend scenario using a fictional stock, ACME, and its corresponding Ondo tokenized stock, ACMEon.
1

You buy one token at launch

Both ACME stock and ACMEon start at $100. You buy 1 ACMEon token. At this point, 1 ACMEon represents exactly 1 share of ACME.
2

The stock price moves

ACME stock rises to 105∗∗.YourACMEontokenfollowsthesamepricemovementandisnowworth∗∗105**. Your ACMEon token follows the same price movement and is now worth **105. The tracking is exact at this stage.
3

ACME declares a dividend

ACME announces a dividend of 10pershare∗∗.Awithholdingtaxof5010 per share**. A withholding tax of 50% applies, so the net dividend is **5 per share.
Withholding tax rates vary by jurisdiction and asset. The actual rate applied to your holding will depend on the tax treatment of the underlying asset via Ondo Finance.
4

The dividend is reinvested automatically

Instead of depositing 5incashtoyourbalance,thesystemreinveststhat5 in cash to your balance, the system reinvests that 5 into the underlying stock. At a share price of 100,100, 5 buys an additional 0.05 shares of underlying value.
5

Your token now represents more underlying value

Your single ACMEon token now tracks the economics of 1.05 shares of ACME stock.
ScenarioCalculationYour token value
ACME stays at $1001.05 × $100$105
ACME rises to $1101.05 × $110$115.50
ACME falls to $901.05 × $90$94.50
Over time, as more dividends are declared and reinvested, the gap between the ACMEon token price and the raw ACME share price will widen further. This is expected behavior — the token price is higher because it embeds the compounded value of all reinvested dividends.

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What is a total-return tracker?

Total-return trackers are financial instruments designed to mirror the complete performance of an asset — not just its price movements.
A standard price-return tracker only reflects changes in the asset’s market value. If a stock goes from 100to100 to 110, a price-return tracker goes up 10%.A total-return tracker captures everything: the same 10% price gain plus any dividends paid during that period, reinvested to compound over time.
  • Price movements — gains or losses in the asset’s market value
  • Income distributions — dividends (for stocks) or interest payments (for bonds)
  • Corporate actions — mergers, stock splits, or other events that affect total value
All income distributions are assumed to be reinvested, net of applicable withholding taxes.
The total-return model gives you a more accurate picture of an asset’s real-world performance. It also simplifies the experience: you don’t need to receive, manage, or manually reinvest dividend cash payments. Compounding happens automatically inside the token.
For deeper technical details on dividend handling and tokenization mechanics, refer to the Ondo Finance documentation.