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Normal fall on ex-dividend day of a little less than the dividend itself.
When shares go ex-div the price usually falls by the amount of the dividend to reflect this. My wife and I have B&M in our ISAs and I bought some in my SIPP for the special dividend.
Noticed ex-dividend today for special 20p
I will be selling as soon as I get my money back. Hope CEO and others won’t be unloading millions of shares like this time last year. Share price still to recover from that. Notice shares down today.
You would still have to pay the 15% overseas tax though due to the company being domiciled in Luxembourg. This would usually be automatically deducted and you would receive the net amount in your ISA.
Berenberg today rated B&M a buy, raising their price target from £4.60 to £5.25.
Yes, 100% tax free.
If you hold the shares in an ISA, are the dividends tax free?
I think this depends on wether there is an aggreement between the two countries. HMRC have a list but it may not be up to date.
As for the 15% withholding tax , can you claim this as foreign tax paid on your tax return as my uk tax bill will be a bit than the tax paid in Lux ?? For example I have paid 2k in lux withholding and my uk tax bill is £2500 will I have to only pay £500 and claim the £2000 as foreign tax paid ??
All replies are appriciated , Thanks in advance
If you only hold shares for a year then maybe yes but hold for two or more years then big NO. Rather pay stamp duty and not the withholding 15% on each dividend.
That’s also the reason you don’t pay stamp duty when you purchase BME shares. Win, win
Thanks for clarifying Investorken!
Much appreciated! :)
It's to do with the company being registered in Luxembourg.
This is from the FY preliminary results.
Dividends are stated as gross amounts before deduction of Luxembourg withholding tax, which is currently 15%.
@Kentio - when you mention a withholding tax? What do you mean by withholding tax?
Is it the tax on dividend for personal investors for holding the stock and the dividend they earn? If so, I thought it varied depending on the person(s) income - i.e. Basic Rate taxpayer pays 8.75% and Higher Rate pay 33.75% and Additional Rate pays 39.35% as the dividend allowances drops from £2000 to £1000 this year then to £500 in 2024.
Please disregard if what I have written is not what you meant, and if you can clarify what you mean then I will have learnt something more today lol!
Cheers.
For income. investors - do not. forget there is a. withholding tax. on. the. dividend - 15% I believe.
From Proactiveinvestors this morning :
B&M European Value Retail SA (LSE:BME) reported an uptick in sales in its third quarter as it announced a special dividend payment.
Revenues in the three months to 24 December 2022 grew 12.3% year-on-year to £1.56bn, the budget retailer said.
"Our strong momentum throughout the Golden Quarter across the businesses demonstrates the strength of our unchanged strategy to relentlessly focus on price, product and excellence in retail execution,” said chief executive Alex Russo.
B&M said, consistent with its capital allocation framework, it intends to declare a special dividend of 20p to be paid to shareholders on 3 February, although this is less than the 25p paid last year.
Additionally, the group narrowed in on its adjusted underlying earnings (EBIDTA), which is now expected to be between £560mln and £580mln for the year, compared to previous guidance of £550mln to £600mln, and ahead of analyst forecasts of £557mln.
“The business has exited the quarter well and will remain focused on disciplined execution,” Russo added.
Third-quarter revenue in its UK business, including B&M Express, grew 10.3% year-on-year, with the group having an additional 12 locations compared to the same period last year.
B&M France reported revenue growth of 24.9% year-on-year, while its Heron Foods division grew sales by 22.5%.
Russo added that B&M will continue to help new existing customers during the cost of living crisis despite the challenging macroeconomic environment.
B&M said stock discipline remained robust, which allowed for a stock reduction of roughly £100mln year-on-year.
20.0p per Ordinary Share to be paid on 3 February 2023 to shareholders on the register at 13 January 2023.
Next is already up 5% on their Xmas trading news RNS
Great results, 20p special dividend too. See how it goes.
Good results and special dividend 20p....happy here
B&M European Value Retail SA (LSE:BME)'s third-quarter trading update on 5 January should give investors a better look at how new chief executive Alex Russo has performed.
Russo took the reins in September, sandwiched in-between May’s full-year results, which showed margin pressure, and November’s half-year results, which saw a drop in UK sales.
According to AJ Bell, analysts will be looking for three key figures from the discount retailer: headline sales growth, like-for-like revenue growth, which fell by 3.9% in the first of the year in the UK, and any change in full-year earnings.
Russo confirmed his predecessor’s forecast for full-year adjusted underlying earnings (EBITDA) to be between £550mln and £600mln.
Analysts at AJ Bell also note that B&M is unlikely to repeat the special dividend of 25p announced in January last year due to tougher trading conditions.
Finally, any information on further store openings will be a point of interest.
B&M has a long-term plan to grow its UK estate to 950 stores, up from 700, and its presence in France to 111 stores.
The plan for the end of the current financial year, this March, had been to add 40 stores in the UK, 15 Heron Foods stores and six in France.
So far, it has opened 10 UK B&M sites, four in France and seven Heron Foods stores
Agree, more potential here, but suspect a cheeky drop tmwr morning.
In fact Jan 21 to Feb 21 the price rose over 100p in a month to above 600p briefly.
Spent Dec 2020 to April 2022 above 500p , if tomorrow's figures look good I can see recovery to at least there over the next week or two. The current price still has BME firmly in value territory.