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They were bought early June with a settlement date of 2nd July at which point I need to sell them (ex div) so I think I should be given the div because I’ve taken the hit on them.
Time will tell I guess, but broker said I should get it so hopefully I will, if not that’s life I guess.
will update on here either way.
Srodgers Your trade clearly isn't 'normal settlement'. It will have been 'by negotiation' as to whether the price was cum-div or ex-div. (If ex-div the price paid would be adjusted for that.)
Also, imagine a different scenario where the shares consolidated in that period. Surely you wouldn't get the original number or shares just because you're were in limbo.
T+20 does seem quite excessive though!
Thanks, I asked them to look at my account and said I have t20 trades which settle July 2nd which went ex div yesterday and if I would qualify for dividend and that was a copy of the brokers reply so hopefully I should get it. At the end of the day I’ve taken the hit on ex div price so should really get the div as the shares would have been in my name but purchased on credit I guess.
Time will tell but thanks for the response.
So on Wednesday we closed at 200.50p. Yesterday the stock trades ex-div and closes 190.2p. We're now at 192p as of time of writing. Dividend was 8.373p per share. Plus ca change. So much for those who don't realise a dividend just transfers money from one pocket to the other, taking it 'off the table'. Now we shall see whether people are true believers and reinvest their receipts in the stock.
"Providing you held the shares on the Ex-Dividend date you should be entitled to the dividend when it is paid as the register is based on the purchased date not the settlement date."
I would check that or at least the wording you provided. To be eligible for the dividend you need to be the owner of the shares on the record date (in this case today). In order to be the owner today you need to have bought the shares at least two days prior to today assuming ordinary trading T+2 settlement. The settlement date matters, not the trade date. Obviously the stock has been trading ex-dividend today and yesterday. (See designation XD on the LSE website.)
Thanks for that confirmation.
Follow on from my post last night I have had the below response from my broker:
Providing you held the shares on the Ex-Dividend date you should be entitled to the dividend when it is paid as the register is based on the purchased date not the settlement date.
Cheers
Thanks again nobull, I think I should contact my broker to clarify and I completely agree with what you are saying.
Will confirm on here tomorrow,
Cheers
Srodgers, you are welcome. The more I think about it the more likely it is you will get the dividend, perhaps not at the same time as everybody else, and the cheque may not be drawn on the same bank account as everybody else's, but I am sure you will get it.
You surely entered into a contract to buy the product that was being traded on that day, the cum dividend purchase of GKP; anyone buying today is buying the ex-div GKP share 'product'. The settlement date is irrelevant: it is surely to do with whether the price agreed included the dividend. There is no way a seller can sell a cum div GKP share and then expect to keep the div as well just because he wasn't removed from the share register in time before the Record Date. The mechanism and the extra paperwork incurred by your broker in fulfilling the contract are not your problem - it is surely the broker's problem. JMV. I hope it all works out okay. Others, (TM?), may have a better answer from actual experience. I have not had experience of this, yet! Finally, if you bought the share cum dividend, I wouldn't expect the contract note to say so, but if you bought it xd, I would expect it to say so.
Thanks nobull/Tm, I guess time will tell and both trains of thought have some logic to them.
Hopefully I will get something as I have about 13k shares on a t trade so it’s not a small amount of money.
Cheers srodgers2004
Nobull, agreed but the broker will want compensating for the work they do, so fairest would be dividend minus a handling fee. There is something roughly the same with SB trading on FTSE. If you are Long, your running trade takes the hit but they compensate your account by a smaller amount.
Surely if you paid a cum dividend price, then you get the divi. Sure, you might not be on the company share register on the record date, but that's not your fault: the broker will have to get the divi off the seller and credit you with it. I can't be sure about that, but at least my answer is logical and is fair to both parties, the seller and yourself.
TM I'll answer your Q shortly.
Thanks tm I also doubt this but then I guess the broker will pocket the divi which seems a little unfair as I’m the one taking the risk. Guess time will tell but I think I will be making sure I close the trades before ex div day on the next one to avoid losing the 8p. Thanks
sr2004, don’t know the answer but logically the answer seems to be No IMO.
This is to avoid failed transactions messing up the register when the buyer fails to have funds to buy or the seller didn’t have the shares to sell.
Does anyone know if I will receive dividend for shares which I have purchased in my nominee account on a T+20 basis which do not technically settle until next week? Cheers
Typo, should read,” more weighting on the later data e.g. RSI and ema, then it is very noticeable.”
aej22, depends on your data supplier whether it was a gap down or up this morning.
Some adjusted the Close down last night to reflect the dividend. So 200.5p became 192.1p.
In addition every other price is scaled down by the effective % rate, so the.critical 157p to avoid overlap is now 150.4p.
The benefits of doing all this is that any indicator is using data which is fit for purpose and targets, support/resistance levels, gaps etc. are moved down as well.
If they don’t adjust everything previous down, then the calculation contains a number for today which has been hit by the dividend, which in the case of GKP in a non-trivial >4%, simply not mathematically justifiable but you pay for what you get. If the indicator places more weighting on the latter data e.g. RSI and ema, then it is very noticeable.
RNS 13/05: "The annual dividend of $25 million is expected to be paid on 2 July 2021, based on a record date of 25 June 2021. The special dividend of $25 million is expected to be paid on 6 August 2021, based on a record date of 30 July 2021."
LSE stocks work on T+2 settlement date basis. You get the dividend if you are on the record as of 25 June settlement date basis or, in other words, 23 June trade date basis. The following day, 24 June the stock would trade ex-dividend. Hence the 8p and change drop ...
Is it ex-dividend day today? Just wondering why the gap down at open and depressed price all day!
So about 16.8p per share in total ( both dividends ) - thank you.
Not to be sniffed at......
8.4p
Could someone remind me how much the dividends on the 2nd July and 6th August are again ( per share ) ?
Thanks.