Advertisement

My Chase Sapphire Preferred® Card 7% Annual Dividend Posted

by on February 28, 2013 · 83 comments

in Chase, Chase Sapphire Preferred, Credit Cards

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.

Update:  As of July 20, 2014, the Chase Sapphire Preferred Card no longer offers the 7% annual points dividend. View the current sign up offer here.

If you already have the  Chase Sapphire Preferred® Card or know about its benefits, you can skip this post. However, if you’re looking to get in on one of the best all-around travel rewards credit cards then feel free to read on.

If you’ve read this blog for any period of time, you know that the Chase Sapphire Preferred® Card is one of my go-to credit cards for points. The points accrue into a central Ultimate Rewards balance that can be transferred to nine travel partners: United, British Airways, Southwest, Korean Air, Hyatt, Ritz-Carlton, Marriott, Priority Club and Amtrak. I mostly transfer to United or Hyatt and they’ve given me the opportunity to fly first or business class on a minute’s notice, for a small cash outlay.

Chase Ultimate Rewards Transfer Partners

Chase Ultimate Rewards Transfer Partners

On top of flexible, transferrable points, it offers two points per dollar on all travel and dining, which is basically all I do. The travel bonus category includes airfare and hotels, but also rental cars, public transportation (think NYC subway, buses, rail, etc), taxis and even parking. Dining is all encompassing as well – from fast food to three-star Michelin restaurants, you get double points – plus there’s no foreign transaction fees, so I always use it when traveling abroad. I even pay for my Starwood hotels abroad using the  Chase Sapphire Preferred® Card, because I’d rather get 2x base points vs 2x Starwood with a 3% foreign transaction fee.

Another great perk of the card is that you get a 7% annual dividend on all the points you accrue during the year (excluding the sign-up bonus, but including all  regular 2x bonus points). The 7% dividend posts with your February statement, so mine just closed last week and I noticed a nice bonus of 22,940 Ultimate Rewards points. I value my UR points at just about 2 cents a pop, so this 7% bonus is worth about $459 to me – more than making up for the $95 annual fee (which is waived the first year).

To check your annual dividend, login to ultimaterewards.com -> Rewards Activity -> Statement Summaries and it should show as an itemized lined on your February statement

My yearly Chase 7% dividend of over 22,000 points- it was a good year for Chase points as I put more and more spend on my Sapphire Preferred

My yearly Chase 7% dividend of over 22,000 points- it was a good year for Chase points as I put more and more spend on my Chase Sapphire Preferred® Card

Granted, I spent a lot on my card and I’m a master of paying for big dining bills and trips and then getting friends and family to reimburse me so my annual dividend is probably larger than what the average person accrues, but it is still one of the reasons why I will keep my Chase Sapphire Preferred® Card around for years to come.

Have you seen your annual dividend post to your account?

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

Previous post:

Next post:

  • Tjo1957

    I dont have one but if I did get the Chase Sapphire Preferred card do you think it makes any sense to keep a Chase United and Marriott Card and pay the $95 each year for them. There is a one free night with Marriott but other than that I dont see much benefit to having both cards as I already have 1M status on UA.

  • k1

    So you spent almost $400,000 on this card alone last year. With that kind of spending it is no wonder you guys can take so many trips on points.

  • k1

    sorry, that should have been $200,000 at 2x points, but still a lot of spending…

  • Kaladeb

    I will probably cancel my card when the annual fee hits in a couple of months. Can I wait to cancel until the dividend posts without losing the dividend?

  • ih

    mu dividend posted a few weeks back for the CSP MC which I got some time in July & I can confirm that I received 7% on the sign up bonus in addition to the regular spend :)

  • paul

    Aside from an excuse to shill the CSP (nice that you’re taking a temporary break from the BA Visa), was there any noteworthy reason to post about points posting exactly as they were expected to?

  • Rob

    I think the free Marriott night is worth the annual fee. Most Marriot hotels average $150

  • Guest

    Seriously. I need to start a blog.

  • Colin

    Does the 2x travel bonus apply to Amtrak purchases as well?

  • ZJ

    You’re still wrong. ~$157,000 in spend @ 2x = 314,000 points. 314,000 x .07 = 21,980. This assumes he did not get a signup bonus and already had the card, in which case the spend would be even less.

  • Mike Szymecki

    Are you sure that the bonus is excluded in the 7% annual points dividend? Is that something for people just now signing up? I signed up this August, earned about 40k points through the end of year, and got a ~5,600 point bonus.

    7% of 80,000 equates to the bonus I received; not 7% of 40,000.

  • LR

    So you basically spent around 250k on your card? You’re just milking all of your customers.

  • Tjo1957

    Yep, I agree with that.

  • Majuang

    Was pleased to see my 7% bonus a few days ago – about 5,000 points there. As they say, don’t look a gift point in the mouth!

  • Tosontsengel

    that would be 325k

  • Tosontsengel

    never mind, i can’t do math, i forgot about 2x points. sorry

  • thepointsguy

    Much less than that, but I was able to put a large amount of business expenses and travel for others on my card. Also add in lucrative Ultimate Rewards shopping portal deals and the actual total spend is a lot less than you think

  • thepointsguy

    Nice.. That changed in April of 2012 so if you got it before you still got the 7% on the sign up

  • thepointsguy

    Yes

  • thepointsguy

    That’s the new rule that went into effect April 2012. If you got it on the signup then congrats!

  • Jeffrey

    I received my Sapphire Prefer card on Oct 2012, and got the 40k sign up bonus on my first statement. on my Oct, Nov and Dec statement I have earn 8655 UR points (inlcuding the Dining & Travel Bonus).

    Last week I received my 7% Annual Dividend on my Feb Statement, however I only received 606 Points for my 7% Annual Points Dividend, which clearly indicated when Chase calculate the 7% Annual Dividend, they do not include the 40K sign up bonus point.

  • thepointsguy

    Less than that with 2x categories and Ultimate Rewards shopping bonuses. And as I said I’ve been able to figure out ways to put huge expenses on my card and get reimbursed.

  • thepointsguy

    The yearly 7% dividend is a unique feature of the CSP and can be very valuable. For people thinking about getting the card, it’s something to consider when deciding whether it is worth it.

    As I put in the disclaimer, if you are already and expert on the CSP, you needn’t read the whole post

  • Grainnemulcahy

    sarcasm? needed?

  • pointguard

    TPG – youre a good guy responding to haters with such poise

  • Mickey T

    Sounds like you still put your domestic Starwood hotels on your Starwood Amex. What is the benefit to doing that instead of using the Chase card?

  • Mark

    I also confirm that my wife and I both received the 7% annual dividend on our 50,000 sign-up bonuses. The 7% annual dividend was around 4,000 points on each of our cards and we only spent $7,000 each. We received the cards in March 2011.

  • thepointsguy

    I had gotten it on my signup bonus as well from 2011.. but if you got the card after some point in spring of 2012, you don’t get the 7% bonus (unfortunately)

  • Mark

    Sorry, meant March 2012, less than a year ago.

  • thepointsguy

    I like to diversify.. and as a Starwood 75 night member I get 4 points per dollar plus 2x on SPG card, so 6x total

  • thepointsguy

    Exactly- that basically pays for the annual fee

  • thepointsguy

    If you cancel you will lose your points, so use them or transfer them if you decide to close the card. Once you have points in your account, they generally don’t take them back

  • Mark

    oops, typo, I meant we received the cards in March 2012. Maybe we just got lucky.

  • thepointsguy

    Probably not the United card because the benefits overlap with Premier Status. As for Marriott, the annual night is probably worth the fee, so I would keep it open just for that (Basically what I do with my Hyatt card)

  • thepointsguy

    You should start booking travel for people and putting it on your credit card. That’s where I rack up a lot of points.. though it helps that I work in the travel business and have people asking me every day to help book them trips!

  • http://www.jeffalytics.com/ Jeffsauer

    5,500 point bonus for me – and I’m quite happy with that! I signed up in 2011, so that doesn’t include the commission on the signup bonus. Surprised I had that much spend, actually, but a lot of it was reimbursable expenses and 2x categories.

    Not sure why one would hate on this post – I find it valuable to see a screenshot of what the bonus looks like. Helps others make sure they get it AND provides newbies something to strive for.

  • http://twitter.com/Frea_O Frea O’Scanlin

    Oh, this is good to know. I’m working up to my sign up bonus right now, so thanks for that info!

  • http://twitter.com/Mileage_Update Mileage Update

    I’d be interested in seeing a post on how you got to the big spend on Sapphire for 2012.

  • http://twitter.com/Mileage_Update Mileage Update

    Isnt the free night limited to a cat 4 or 5 max?

  • Pete

    Somewhat confused. I got the CSP about 2 weeks ago. When I get my dividend next year, will it count the 40k bonus points or did I miss that boat?

  • thepointsguy

    Missed the boat, but you could get lucky!

  • Pete

    ah, oh well. ill just keep using that rewards mall!

  • http://www.facebook.com/people/Andre-Grant/100001104877739 Andre Grant

    Wow, I feel like a under achiever compared to others…lol.. I only received 2022 dividend points.

    As always, Brian thanks for all your useful information you share with everybody.

  • PJ

    I was in a Chase Branch in CA. close to San Jose. I was told it pays to check in with a chase branch if you have good banking relationship with CHASE. Some customers were thrilled to walk away 50K or even 70 K sign on bonus. they can also tell you what card is awaiting for you

  • longroller

    Got my card Sept 2012 and got the 7% on the 40K guess I got lucky.

  • Kaushal

    Did your calculated dividend match the actual dividend? I am trying to calculate mine in different combinations of points earned by spending, received as signup bonus and UR points transferred from my Chase Freedom. But 7% of none of the sums in any combination matches the received dividend.

  • MarkR

    I also got the 7% on the 40000 signup bonus. Very sweet!

  • Justin

    I earned over 500k UR last year and never spent more than $15k/month with Chase. Granted 100k came from CSP/IB sign up bonuses, but still… not very hard to rack up UR

  • Bill Bouchard

    Nice article. But my friend I read that in today’s circumstances we should less use of our cards and debts. Please solve my confusion.

    Dividend paying stocks

  • Bender

    Got about 6,400 points for my dividend, then transferred all to my newly opened ink bold. I’m not in the game of buying points so I didn’t want to foot the annual fee on the SP. now that I have the bold I can at least float the points for another year and hopefully consider the ink plus at that point if needed. Might hang onto the bold longer though. Still nice to get the extra points!

  • NC

    Brian – Thanks for your blog and I must confess that I am an avid follower now. My CSP Visa is due for renewal. I did SM Chase to cancel the account so that I can apply for CSP Mastercard to get the signup bonus and a break of one more year on the annual fees. They came back saying that the fees will be waived but the signup bonus is only for the new customers.

    Now, if I cancel the account and apply for CSP MC:
    1) Do you have a link for that on your site? I got my CSP Visa through your link.
    2) Is there a probability that I may still not get the bonus even after applying for a new account? How much time lag should I give between cancelling and applying for the MC?

    I will greatly appreciate your thoughts on this.

  • secretcognition

    Bear in mind he gets around $50 every time someone clicks his affiliate link and signs up for a Chase card. It’s a dirty business, the internet.

  • Josh

    TPG – I currently have the southwest credit card, so i am only getting 1 point to every dollar on dinning/travel. If I switch to the sapphire, it sounds like I will essentially get 2 points to every dollar… seems like a no brainer… the deal breaker may be if the points i transfer from sapphire to southwest count for teh companion pass, do you know if they do?

    also – is the current sapphire signup deal one of the better ones (ie. 40x bonus points)?

  • Josh

    makes sense – thanks a lot for the help and quick response – love the blog!

  • thepointsguy

    Sapphire is better for travel and dining but transferred points do NOTcount towards companion pass, unfortunately.

    40k is standard for sapphire pref- used to be 50k but now 40k is the offer across all
    Channels

  • ReschDMD

    I apologize if this has been covered before in other posts, but a very nice benefit I discovered was that with the Ultimate Rewards program, I still get FF miles and PQM on flights. Essentially you redeem through Chase and they purchase a ticket for you, so as far as United was concerned, I have a paid ticket and get 3000+ miles on my next trip and very close to my Gold Premier threshold. I also got a great deal: the same flight was 13,000 UR points and $0 vice 25,000 UA miles and $5 fee. And since it is a paid ticket, as Silver Premier I am eligible for a day-off First Class upgrade (good chance at that, since it is a midnight flight Portland, OR to Baltimore).
    It’s definitely a good card for travel! Note: some of their UR deals SUCK..my first class DC to Honolulu ticket was 80,000 miles; UR did not offer first at all and even economy was something insane like 72,000 points and another $600.

  • Pingback: Video SRQ: What Credit Cards are Best for Big Spenders ($100k+)? | The Points Guy()

  • Jarrod

    any idea if points redeemed through the travel discount count for more the 3% travel bonus? For example, lets say I redeem 100,000 ultimate rewards points for a flight and hotel, will I get 3000 points for that?

  • Pingback: Managing your money while living abroad | A Location-Flexible Life()

  • Pingback: Maximize Monday: What Will 60,000 Chase Ultimate Rewards Points Get You? | The Points Guy()

  • Pingback: Get Half-Price Meals In Europe This Summer With The Fork | The Points Guy()

  • andrewx80

    Can I Transfer my Chase Freedom Points to my Wife’s Chase Sapphire Preferred Card? The intent it so be able to then transfer them to Airlines.Accounts

  • Pingback: Determining What Spending Counts Toward United’s Premier Qualifying Dollars | The Points Guy()

  • Pingback: Maximize Monday: Triple Dipping With Hotels.com, Sapphire Preferred and the Ultimate Rewards Shopping Portal | The Points Guy()

  • Pingback: Top 3 Credit Cards For Family Travel | The Points Guy()

  • napplegate

    Does the dividend apply to UR Mall bonus points as well or simply on base spending points?

  • Pingback: I Have The Southwest Companion Pass, Now How Do I Achieve A-List Status? | The Points Guy()

  • Andrew

    get a life

  • Pingback: Top Current Credit Card Offers With First Year Annual Fee Waived | The Points Guy()

  • Pingback: What Credit Card Should You Use With Uber? | The Points Guy()

  • Bob

    My current Visa card has dues paid until Feb 2014. Should I overlap and get the Chase Sapphire Preferred now or wait? Are there any changes to the CSP offering planned over the next few months?

  • Richie

    If I combine my Freedom points (say 10,000 points) to my Sapphire Preferred points (say 60,000 points) now in October, how much annual bonus do I get for each account (10% freedom and 7% Sapphire Preferred ) at the end of the year? Thanks.

  • richie

    If I combine my Freedom points (say 10,000 points) to my Sapphire Preferred points (say 60,000 points) now in October, how much annual bonus do I get for each account (10% freedom and 7% Sapphire Preferred ) at the end of the year?

  • Daniel

    Can we please get a response to this question as I was curious to hear the answer. Thanks

  • thepointsguy

    Yes

  • thepointsguy

    Yes all points earned except signup bonus

  • Mark Garretson

    If points are transferred from one Chase account (Freedom card) to another Chase account (Saphphire Preferred), do you earn the 7% dividend on the points that were transferred?

    (These are two separate accounts. My wife is the Sapphire card owner and I am the Freedom card holder.)

  • Timothy

    If I cancel my card before February to avoid the annual fee will I forego the dividend bonus?

  • DP

    I just cancelled my CSP card and changed over the Capital One Venture rewards card. After the first year, it does not make sense to stay with the CSP card compared to the Venture card. The Venture card pays 2x points on everything, not just travel, still no foreign transaction fees and after the first year it is $59 not $95. I asked the CSP people to waive the annual fee and they said they could not. So Chase has lost out on $50K of annual spend from me. I liked the CSP card, but compared to the Venture card it was a no-brainer after the first year.

  • http://www.doctorofcredit.com/ doctorofcredit

    No, you don’t earn the dividend on transferred points.

  • sky

    Annual fee on my CSP is due on 03/01 and i am planning to downgrade to Chase Freedom before that. Should i be getting the 7% bonus points in Feb statement or March statement?

  • Solanumph

    Do you earn the 7% dividend on point that you accrued even if they’ve been transferred out of the account before the February statement?

  • http://www.doctorofcredit.com/ doctorofcredit

    Yes, you earn it on all points earned.

Print This Page