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Dividends

  • 15-01-2014 12:48pm
    #1
    Registered Users, Registered Users 2 Posts: 43


    Hi,

    I have an online broker account (davyselect.ie). I own some shares of companies that pay out dividends.

    Question: if I close my broker account and decide to take share certs instead, how can I continue receiving dividends?

    Thanks


Comments

  • Registered Users, Registered Users 2 Posts: 5,834 ✭✭✭Sonnenblumen


    JohnnieA wrote: »
    Hi,

    I have an online broker account (davyselect.ie). I own some shares of companies that pay out dividends.

    Question: if I close my broker account and decide to take share certs instead, how can I continue receiving dividends?

    Thanks


    Very straightforward. Payments options include posted cheque to a nominated address/direct lodgement into a nominate bank account. Contact the Company's Registrar (details will be on company's website) and enquire which option is available.

    You may have to pay a small fee to have a share cert issued, but this is also routine administration.


  • Registered Users, Registered Users 2 Posts: 43 JohnnieA


    Thanks Sonnenblumen.

    So I should contact each company separately?

    Do you know if there are usually any fees associated with sending dividends (other than the 1 time fees for getting certs)? Some of the companies US ones (e.g. Coca cola), will they charge anything for the bank transfer or sending the cheque?


  • Registered Users, Registered Users 2 Posts: 5,834 ✭✭✭Sonnenblumen


    JohnnieA wrote: »
    Thanks Sonnenblumen.

    So I should contact each company separately?

    Do you know if there are usually any fees associated with sending dividends (other than the 1 time fees for getting certs)? Some of the companies US ones (e.g. Coca cola), will they charge anything for the bank transfer or sending the cheque?

    Glad to be of some help JohnnieA.

    Probably the best way to go is to first get the broker to arrange that certs for each stock you own be issued to you. This will incur a Cert Fee (CF) usually € 20 - € 30 /stock, so if you have X shares in 5 companies you can expect to pay fees of CF x 5. Your new certs will be issued by the company/company's registrar and you should check that the address which appears on the cert is correct. If you need to contact the Company/Registrar quote your Shareholder Ref Nr.

    Dividends (including direct/cheque) are paid without any incurring charges (apart from tax). However if you request that the company make payment to you in another currency, if the service is available, you will be charged for it. Also some companies will offer the option to make dividend payment directly (without incurring any extra charges) to a nominated account, some others will offer the option but levy charges and others will not and simply post the dividend payment cheque to you.

    Get your share certs first, then contact each Company/Registrar, determine what dividend payment options are available and what fees may apply. Then determine your preferred method of payment.


  • Registered Users, Registered Users 2 Posts: 43 JohnnieA


    Thanks for the help.


  • Registered Users, Registered Users 2 Posts: 1,104 ✭✭✭manonboard


    JohnnieA wrote: »
    Hi,

    I have an online broker account (davyselect.ie). I own some shares of companies that pay out dividends.

    Question: if I close my broker account and decide to take share certs instead, how can I continue receiving dividends?

    Thanks

    Johnnie, do you mind if I ask if your thoughts of closing your davyselect.ie account has anything to do with problems with the website?

    I've been thinking along the same lines myself. Got hit with a silly display bug the other day, and i made a bad judgement on it due to the incorrect data.


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  • Registered Users, Registered Users 2 Posts: 43 JohnnieA


    manonboard wrote: »
    Johnnie, do you mind if I ask if your thoughts of closing your davyselect.ie account has anything to do with problems with the website?

    I've been thinking along the same lines myself. Got hit with a silly display bug the other day, and i made a bad judgement on it due to the incorrect data.

    No. I'm not aware of any problems to be honest.

    I've got shares from 8 companies which I keep only for the extra cash from dividends. Comes up to about 2k a year and I was just wondering, since I'm not doing any trading, might it not be a better idea to save the 100 euro I pay davy in maintenance fees (80 + VAT).

    Disadvantage of this plan is that I'll have to pay the cert fees and if I decide to resume trading in few years time, I'll have to re-open the account. So I'm still thinking it over.

    Other than the slightly too high fees, I've been very satisfied with Davy since I started using them in 2008.


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