Received Dividend Cheque

[damien275x]

Just thought I would share a story. Got the mail yesterday, saw this envelope with the banks emblem on the letterhead, thinking "oh ****... another bill" I opened it up, and at the very bottom was a cheque made out to me for $130.

No it's not much but after over a year of sitting on the side line thinking "I know nothing" and keeping all my $$ in the bank, I've put some into the market while I continue to learn

 

[lianeisme]

It's a nice feeling to actually go to the mail box and get a cheque instead of a bill isn't it.
Good on you

 

[ROE]

Just thought I would share a story. Got the mail yesterday, saw this envelope with the banks emblem on the letterhead, thinking "oh ****... another bill" I opened it up, and at the very bottom was a cheque made out to me for $130.

No it's not much but after over a year of sitting on the side line thinking "I know nothing" and keeping all my $$ in the bank, I've put some into the market while I continue to learn

if you buy good business that cheque will grow each year
while you sit around and drink nice coffee and go on holiday
my first divi cheque around 80 bucks for one stock a decade ago, but now it's 20 times that amount
each year, the beauty of compounding

and every now and then GFC and other worldly event come along
and give you another opportunity to buy stuff real cheap to compound
those dividend return

Einstein used to say
"Compound interest is the eight wonder of the world..He who understands it earns it...he who doesn't pays it"

and Einstein know a lot about maths and its magic

 

[VSntchr]

Im glad that at only 20 years of age ive discovered how wonderful compounding can be and how to use it to my advantage.

Heres to another 20 years of solid compounding!

 

[Long Shot]

After a few margin call during the GFC, the following dividend cheque was a wooping $2.45. Just to give a different perspective. No happy emotion at the time.

On a different note, could someone help me with this question?
How do i change my current divident plan from cash to reinvest back to the company?
Do i need to contact the company or the CHESS?

Thanks in advance

 

[pixel]

How do i change my current divident plan from cash to reinvest back to the company?
Do i need to contact the company or the CHESS?

You contact the share registry. Most registries will let you change your options either online or by downloading a pdf that you have to sign and send back to them.

 

[So_Cynical]

You contact the share registry. Most registries will let you change your options either online or by downloading a pdf that you have to sign and send back to them.

And if the Registry is Link you can often bypass them and get a dividend reinvestment change form at your stock's web site...like i did for SUN - Suncorp.

 

[Tonester]

Interesting point - generally tax is only payable for an individual on dividends when you cash the cheque.

 

[pixel]

Interesting point - generally tax is only payable for an individual on dividends when you cash the cheque.

not so, Tonester:
The taxman deems you received that dividend on the say the company paid the dividend. Whether you bank the cheque, burn it, or donate it to charity, you will have to declare it as income and be taxed.
If you make a qualifying charity donation, you may declare that as a deduction. But you can't say "I didn't receive the dividend, so it didn't happen."

 

[Tonester]

not so, Tonester:
The taxman deems you received that dividend on the say the company paid the dividend. Whether you bank the cheque, burn it, or donate it to charity, you will have to declare it as income and be taxed.
If you make a qualifying charity donation, you may declare that as a deduction. But you can't say "I didn't receive the dividend, so it didn't happen."

Apologies, you're 100% correct. See page 6 of this link from the ATO.

http://www.ato.gov.au/content/downloads/IND00237927N26320610.pdf