Delays in having company dividends lodged to my stockbroking account.

I

IsleOfMan

Registered User
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How long should I have to wait to get a company dividend credited to my stockbroking account? A good week since my dividend from a particular company was paid and not in my Davy account?
 
Are you sure it was paid ?

There are different dates associated with a dividend payment
Record date
Ex-dividend date
Payment date

and where is the company headquartered - if it is abroad there will be delays involved in cross-border transfers, currency exchange, etc
 
Find out if they are using Pershing. I have the same delays, since switched to them, about 9 months ago. I get weekly divs, so I notice the lag.
 
jpd said:
Are you sure it was paid ?
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jpd said:
if it is abroad there will be delays involved in cross-border transfers, currency exchange, etc
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I maintain a Sterling account with an Irish Stockbroking firm. My dividend is paid in Sterling. I am not sure why there would be a delay in cross border transfers? It took me 6 days after the payment date to get my dividend credited to my account and only after I made a phone call to find out where it was.
 
Just because you have a £ account doesn't change the fact that cross border payments can take time.
There are a number of different intermediaries involved in dividend payments - and maybe not all of the processes are fully automated but require an operator to intervene - who knows

Where did the company pay the dividends ?
Who divied up the dividend amongst the different shareholders - who administers the shareholder register?
How was the payment handled when it arrived in your brokers account - is it a manual distribution to the different account holders?

It sounds as if some of the process was handled manually - so is your broker in-efficient in this aspect of the business?
 
Just out of interest, I checked my Davy account this morning. I have two shares with (scrip) dividend payment dates of 8 April. To date, neither of these has hit my account so we're 12 days and counting at this point. Of course, once they do arrived they are backdated to the date of payment, so it's difficult to track delays. I'll check each morning now until payment arrives.
 
A scrip dividend is an option to take the payment in cash or extra shares.

There is usually a delay, which may be weeks, so that shareholders can decide which option the want.

There should be a date by which a decision has to be made - and then the dividend is paid.

These dates would normally be published by the company
 
Agreed, but those dates would precede the date of payment of dividend - a decision deadline would be set in advance of payment date, so that wouldn't be a factor here delaying the handing over of the dividend (or shares) by the broker to the account of the shareholder.
 
I have a newish account with Davy Stockbrokers. It is designated in Sterling.

I invested in a UK company and received a dividend in April. The dividend was 23p per share. I have approximately 7000 of the shares. I was expecting about £1600 to be credited to my Davy account. I recently checked my Davy account and noticed a credit of about £1100.

There was no breakdown of the gross amount of the dividend, deductions etc. Just an amount of circa £1100 lodged to my account.

I have two questions I hope someone can answer for me.

Would the shortfall be tax? Is it a UK or Irish tax? What % rate would it be?

Are stockbrokers required to deduct this tax from the dividend as I thought that I could do this myself on my end of year tax return?

Thanks

PS. I contacted Davy about this by email and no response to my question yet....
 
Dividend Withholding Tax is generally deducted by one of the actors in the payment chain - this could be your broker or another actor further up the chain.

There were changes introduced on 1st Jan 2020 and further on 1st Jan 2021 but the details are not clear to me

However I suspect that DWT of 25% has been deducted.

And, Yes, brokers are obliged to deduct the DWT
 
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Withholding tax and Irish encashment tax deducted.

Davy don't supply dividend statements in real time for each dividend payment during the year. A statement will be issued at the end of February 2022 for previous year.
 
Bluefin said:
Davy don't supply dividend statements in real time for each dividend payment during the year. A statement will be issued at the end of February 2022 for previous year.
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I have found this irritating.

I would like to check the dividend rather than work it all out.

Campbell O'Connor sent a Dividend Certificate with each dividend.

Brendan
 
I use a French broker as well as Degiro and they both provide this information in real-time - in fact, they provide it on the ex-dividend or record date in most cases. Only if there is an option to have it paid in discounted shares, is it delayed.

About time Davy upgraded their online offerings
 
Brendan Burgess said:
Campbell O'Connor sent a Dividend Certificate with each dividend.
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I had an account with Campbell O'Connor as well. They would purchase the shares on my behalf and issue me with a share certificate.

When I received the dividend, it was paid direct from the UK company. I got the gross payment. The dividend was made up in two parts, the cheque portion and the dividend counterfoil. Lots of information.

Can I opt for a share certificate with Davy? This way I can have the gross dividend sent to me as soon as it is due, direct from the company, with all the information that I need. I can do my own tax returns.

Having a sum of money lodged in to my Davy account with no explanation is unsatisfactory. The least they could do is tell me the gross amount, the withholding tax, then the net amount.

I have paid large fees to buy these shares and I pay an ongoing account maintenance fee for an account that has few transactions.

I would also say that it was far quicker to purchase shares when dealing with Campbell O'Connor. Far quicker to answer the phone. I always got a price immediately, statements on tap. Excellent service from Ken.

jpd said:
And, Yes, brokers are obliged to deduct the DWT
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Is this a UK tax or an Irish tax? Can I not choose to have the gross dividend paid to my account and I deal with the tax? It is coming from a UK company to an Irish resident. Does that not matter?
 
To answer your questions
The 25% is an Irish tax.

No, you cannot choose to have the gross dividend paid as long as you dealing through an intermediary who is holding the shares. Campbell O'Connor issued you with share certificates - these have more or less disappeared now.

And, no it doesn't matter that the dividend is paid by a UK company to an Irish resident

As for service, that depends what you want to pay for - many execution-only online broker services exist where you can purchase and sell shares in a matter of seconds. Degiro are certainly a lot cheaper than Davy
 
jpd said:
Campbell O'Connor issued you with share certificates - these have more or less disappeared now.
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I vaguely remember Davy having a facility to opt for a share certificate for a fee. I would ask them if they responded to my emails.

jpd said:
Degiro are certainly a lot cheaper than Davy
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Do you know if you can purchase upwards of €100k worth of shares with Degiro. I know that Davy execution only, would not allow this amount.
 
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