This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

Registering for Dividends

Jump to new

ctp6360

Joined
22 June 2005
Posts
277
Reactions
2
Hi I have tried searching the forum for an answer to my question but to no avail. I (accidently) held WBC past its ex-dividend date, I have now sold WBC. I assume this means I am entitled to the dividend (as I sure as hell incurred the associated drop), therefore, do I need to do anything to let WBC/someone know my details like those letters they send you a few weeks after contracts settle, the ones which I throw directly into the bin? Or is it automatically linked with my CHESS information?

Any advice would be appreciated..
 
Hi, yes you will get the dividend payment. And yes it will be mailed to you as a cheque, Computershare will have your address, unless you've movedd recently??

Registering is wise, reinvesting dividends is wise, and giving them your tax file number is wise as well.

Speaking of that I better register some of mine. I'm lazy too.
 
Hi ctp6360


In general, to be entitled to receive an upcoming dividend you have to hold shares in the company after the market closes on the day BEFORE the ex-dividend date.....you'll notice the associate 'Record Date' is normaly 4 business days after the ex-dividend date to allow time for the normal T+3 transactions.

If you sell shares on the ex-dividend date or after then you will still receive the upcoming dividend.

Also, the major share registries like Computershare and Link Market Services have their own websites on which you can open an account and update your TFN details, direct credit details for dividends etc etc online for each holding and not have to worry about filling in forms and sending them back to the registry.....by default you will receive dividend payments by cheque unless you add your direct credit details (any Aus bank account should be ok) to your holdings.....my advice is to use direct credit rather than wait for 'cheques in the mail'...

cheers

bullmarket
 

u must hold at least 50 stocks; but why not ey

if u wanna go for a nice juicy dividend, take a look at PBD
land developer in WA, very illiquid though... but theyr around $2.30mark and divvy is 50cents

if u play it smart, could be an opportunity
 
G'day ctp6360,

If you have not registered your TFN prior to record date, then there is a high probability that the registry will deduct 48.5% withholding tax from the dividend(I think that is still the rate) This will depend on how close to the exdiv date you buy, as some brokers will register for you, but they don't rush.

As BM said, you can register online with Computershare & Link Market

WBC is with Link Market so you can check yourself & see whether your TFN is quoted
 
you can claim your witholding tax back as tax paid at your tax return time though, but its better to get your cash up front
 
reinvesting dividends is wise
Click to expand...

Why?

Cause you'll spend it on alcohol, ciggarettes, pr0n, women, food or some other thing if you don't.

The more you invest the better!
 
suhm said:
you can claim your witholding tax back as tax paid at your tax return time though, but its better to get your cash up front
Click to expand...

Exactly......who needs the extra hassle......better in our pocket than theirs.
 
Realist said:
Why?

Cause you'll spend it on alcohol, ciggarettes, pr0n, women, food or some other thing if you don't.

The more you invest the better!
Click to expand...

Do you therefore reinvest all dividends in all your shares regardless of whether the SP is going up or not?

Julia
 
Do you therefore reinvest all dividends in all your shares regardless of whether the SP is going up or not?
Click to expand...

Well I think it is wise for most people to buy a house.

The reason is - it is forced savings!

It is harder for most people to save if they are renting, they have more money to spend on other things. Temptation sets in.

Same with dividends, if you reinvest them you are forcing yourself to invest. Having extra money in your bank account tempts most people to spend it rather than invest it.

Buy a share that pays good dividends, reinvest them, and forget about them. They'll grow a hell of a lot quicker if you do obviously.

And if the share price has gone down recently. Even better!! because you get more shares for your money! If it goes up you get less shares but your overall investment is worth more, you win both ways!
 
Could someone help clarify the registering for dividends on Computershare and Link Market. Do these two companies cover all the ASX stocks? Some of my holdings are registered on one site, with the rest being registered on the other.. Once I register my TFN and banking details on these sites, is that info then carried on to all future holdings? Or does TFN/banking details have to be re-registered to the new stock each time I buy some shares?

Thanks
Bodhi
 
G'day

Could someone help clarify the registering for dividends on Computershare and Link Market. Do these two companies cover all the ASX stocks?
Click to expand...
It is up to the company to choose who will do their registrations. If this info is not on your brokers site, then go to company information lookup Put in your stock code & among other information, this will tell you which Share Registry looks after this company.

Once I register my TFN and banking details on these sites, is that info then carried on to all future holdings? Or does TFN/banking details have to be re-registered to the new stock each time I buy some shares?
Click to expand...
If you trade this stock each dividend time then usually your details remain with a nil holding, however it is best to lookup online with the applicable registry just in case. If your details have dropped off then you can imput your details online with Computershare & for Linkmarket (if you are an individual for banking details)
 
Hi Rozella,


Thank-you, very helpful.

Bodhi
 
There is one major flaw when having one or more HIN number! if you move shares across different HIN the tax file Number is cancelled because it assumes a new holder for e.g if I move shares from my normal trading account to my margin load account which CommSec holds with their own HIN # I would be paying 48% tax as I have a few times until I worked out what happened in other word they hold security over your shares

cheers laurie
 
G'day laurie,

Yes, that can happen, but if you trade cum-dividend stocks as I am all the time, it becomes part of every day trading to make sure that all details are registered & up to date. It can become messy until you work out a routine & spreadsheet so that you know where you are all the time with the registrations & also where you are with the 45 day rule, ....& when you will be paid so that you have a regular income stream without dipping into working capital.

So every time I purchase a stock, I make sure that all my details are registered. Many a time the stock is sold before exdiv date, & the effort was wasted, but if you don't keep up with it, it seems to be the very time that you have the withholding tax deducted.
 
Very true rozella and once the dividends are paid they cannot reverse the error

cheers laurie
 
Regarding the witholding tax you will get back any additional tax you pay on your dividends, as a result of choosing not to (as allowed under current law) or forgetting to provide the share registry with your Tax File Number, when you submit your annual tax return.

The witholding tax is entered as tax already paid on your tax return and so at the end of the day you end up paying tax at only your marginal tax rate on each dividend.

By not providing your TFN, all you are doing is paying additional tax at the time you receive the dividend but then get that additional tax back at tax time.

cheers

bullmarket
 
Thats right bullmarket, however, its just easier to do the paperwork as we go, & have the cash in our bank account instead of someone elses.
 
I agree rozella

I also register my details with the appropriate share registry within a few days after settlement.

I was trying to highlight the fact that in case anyone forgets or chooses to not provide their TFN then they still end up paying the same tax at the end of the day as they would have had they provided their TFN.

cheers

bullmarket
 
You must log in or register to reply here.

Similar threads

R
IRAQ: the Big (neo) Con
Replies
1
Views
5K
basilio
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...