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When I online chatted with Halifax, they said they didn't process scrip dividends???
Oilmanmike, Thanks for this info. It is interesting since I receive the following reply from AJ Bell customer service. Hopefully the problem is with their customer service team rather than their ability to process corporate actions.
RE: Can you process script diviends?
14/05/2021 16:22:57
Thank you for your message.
Please be advised as a platform we do not participate in Scrip dividend events.
If you have any further queries, please feel free to contact us.
Yours sincerely
Michael Hill
Dealing Services Team
Baldmark both AJBell and HL processed the Hammerson scrip dividend no problem.
It is unusual for the scrip to be 10 times the cash
but they want to retain REIT status and retain cash.
Same will be the case here.
HL don't usually but sometimes do. I got the following reply. Looks like it will need a number of people messaging HL to get this sorted if NRR do as offer an enhanced script dividend.
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Thank you for your message.
All dividends are typically paid to us as cash, as we do not facilitate scrip dividends on the platform.
In some rare cases if the scrip dividend is better value than a cash dividend we may consider taking the scrip dividend on that occasion.
If you have any other questions, please get back to me.
Kind regards
Catherine Lai
Investment Helpdesk
Hargreaves Lansdown
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Been in touch with AJBell YouInvest - they do NOT process script dividends so will need to consider selling if one is announced. Halifax on the other hand can process them.
yes, no formal announcement, just ensuring in a position to accept what ever the outcome is for the dividend.
no intention to cause concern, just preparing.
Ballio
Nothings been announced yet. Just an assumption that they may go down that route to maintain REIT status but avoid a cash distribution.
When or was the Scrip dividends meant to be processed? I am a Trading 212 account holder and have been told they cant process scrip dividends! only cash.
urbanguru, apologies unsure about T212, but have been in contact with Hargreaves Lansdown in ISA and SIPP and they are capable of processing them.
Ballio
Does anyone know for sure if T212 are able to process scrip dividends?
Thanks for the feedback everyone.
Just bed and isa’d £20k’s worth in anticipation of a scrip dividend of one new share for every 12.55 worth 8p or a 1p cash alternative.
Any broker who refused to deal with the script would certainly be my ex-broker very quickly, whatever the cost. I was actually surprised that my broker handled the DUKE enforced script dividends without any problem. That helped me build a very large holding because I kept topping up after each script. A lot of people seem to for some inexplicable reason. Certainly helped bring my average down dramatically.
I prefer to reinvest cash dividends every few weeks into whatever holding I feel need topping up, but if it helps the company, that's fine.
I do fee for all those who’s brokers were unable to process the scrip dividend. Unfortunately this will
not be a consideration in the decision that has to be made. Investors unhappy with their provider should vote with their feet
OIL..... Not all brokers allow scrip dividends as their service.... Ask Hammerson's very upset holders who could not get their recent ENHANCED dividend because their brokers refused to deliver it (Like Fidelity and others)
Solo if they are collecting 95% of rental income on 2021 allowing for a 20% reduction in rents then 15p would be the minimum I would expect. Obviously divestment may bring income down a little but then as that reduces LTV I would expect the discount to NAV to reduce also.
Then we have the Hawthorn Pubs business potential IPO which should not only reduce LTV but they will be selling at a lower discount that the Mkt has applied. My 6 month target here is 150p.
I would agree OMM, it makes sense to pay whatever dividend there is as a scrip this year and, in my opinion, until the LTV is below 40% (I would even say 35%). This maintains the REIT status, shareholders get "something", and NRR keeps cash to allow it to control the LTV and stay clear of any banking issues.
I am sure we would all prefer cash but not at the cost of hampering the business when they've been through so much in the last 12 months.
The downside (that I can see) is that it would also suppress the "full" dividend that NRR might be able to return to in the long term (3 year timeframe). It was 21.6p pre-Covid but I think anything over 15p for FY 2022 is wishful thinking. I'd take double digits!
Guitarsolo
We are still waiting to see if they pay anything out for year to 31/3/2020 the announcement should be due round about now. With regards to 2021 a full dividend should equate to around 15p a share on the basis rental income is down 25% on 2019.
We cannot make comparisons with any of the 2020
Income stream for obvious reasons. They paid something like 21p in the last non COVID year.
I am expecting a 5p scrip dividend for the rump of the year just gone as they will need to conserve cash and their REIT status.
Looking forward they have muted the sale of the pubs business, Hawthawn, which will result in a narrowing of NRR’s discount to NAV.
My med term target here is 150p plus the 5p of extra shares.
Hi, Im pretty sure that was the last time it was spoken about officially! No news since we are waiting!
Hi everyone, I'm a new investor with NRR. Found one report from I think Nov 2020 that said NRR were planning to pay a full year's dividend in 2021....but that's all. Does anyone have any info on this subject please?