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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?

Chase Sapphire Preferred® Card

Even after the introduction of the Chase Sapphire Reserve, the Chase Sapphire Preferred is still a fantastic choice if you want to avoid the Reserve’s $450 annual fee, earn 2x on all travel & dining and earn a 50,000 point sign up bonus.

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More Things to Know
  • Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®
  • Named Best Credit Card for Flexible Travel Redemption - Kiplinger's Personal Finance, July 2016
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening
  • No foreign transaction fees
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 50,000 points are worth $625 toward travel
  • No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards
Intro APR on Purchases
N/A
Regular APR
16.49% - 23.49% Variable
Annual Fee
Introductory Annual Fee of $0 the first year, then $95
Balance Transfer Fee
5.00%
Recommended Credit
Excellent Credit

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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.