How are dividend payments made on a share dealing account? newbie question

[Guest Bezzzo]

Hi, sorry for the newbie question. If i purchase buy shares of a particular company in my share trading account [ Looking to buy 

Lloyds Banking Group PLC LON: LLOY ], if they pay an annual dividend, does that get automatically paid into my IG share trading account, how does this work?

 

Thanks.

[HannahL]

Hi , thanks for the post and welcome!

 

If you hold shares in a share dealing account, and purchased them before the ex-dividend date, then you will be eligible to receive any dividend paid on or after the forecast pay date.  The amount for which you are eligible will be credited to your account as a cash balance, and will appear on your ledger as such.

 

Hope this answers your question, but let us know any others you have!

 

Thanks,

Hannah

[Guest davidb]

How do I find the ex dividend date to see if I've made the cut off date? For eg, purchased AMP shares Feb 12th 2017. I've seen no money and I know AMP have paid dividends?

[Guest davidb]

How do I find this ex dividend date to see if I've made the cut off date? For instance, purchased AMP shares Feb 22 th 2017. I've seen no money and I know AMP have paid dividends?

[Guest RobertR]

Hi , thanks for the post.

 

All dividend information will be available via a few different methods. As it is public information, you'll be able to go straight to the company website where they'll have a shareholder information section, or alternatively it's likely that the dividend information will also be displayed on the particular exchanges webpage. To give an example of AMP, please see this link to the ASX webpage showing the current and next dividend payment.

 

Please note that in order to qualify for the dividend you'll need to hold the shares through the open of the market on the ex-dividend date, so any shares purchased on the ex-dividend date would not qualify. This means that if you purchased your AMP shares on the 22nd and not the previous trading day, you will unfortunately not be entitled to the dividend.

 

I hope this answers your question, and if you have any others please let us know!

 

 

Rob.

[Guest davidb]

Thanks Rob-appreciate the answer and understood.

 

How uncanny I purchased on the first date available that doesn't pay dividends!!

[Guest chriso007]

Hello

I am willing to double confirm something here: 

The people asking question ask about dividend related to "if he buy "shares""

At IG  we don't buy share but CFDs. Does CFD get dividend distributed too like share ?

If yes, can you please indicate how much taxes we have to pay on it.

If we sell a CFD on the ex dividend date, do you confirm we have to pay dividend and not receive it ?

Thanks

[Guest chriso007]

Hello 

I am willing to double confirm something here: 

The people asking question ask about dividend related to "if he buy "shares""

At IG  we don't buy share but CFDs. Does CFD get dividend distributed too like share ?

If yes, can you please indicate how much taxes we have to pay on it.

If we sell a CFD on the ex dividend date, do you confirm we have to pay dividend and not receive it ?

Thanks

[Tri]

A little bit easier and more straight forward explanation is that "ex- dividend" means excluding dividend, or past the date when you qualify for a dividend. The share price normally drops at open on the ex dividend day by the amount of the dividend.

To qualify for a dividend you have to hold shares on the day before the "ex" day.

What you do on the ex dividend date doesn't affect your position. You don't receive and don't pay (if CFD or spreadbetting) dividend.

I'm not sure about the tax position on CFD as I don't do them. I found out the hard way the extortionate transaction charges after my first and only cfd deal so never considered doing cfd again. It's too bad that many things become known only after you experience them, because they aren't clear before the event.

 

[HannahL]

Hi , thanks for the post, and apologies for the delay! , thanks for your helpful information re the 'ex-dividend' date.

 

Whether you hold a stock outright or are spread betting/trading CFDs, you will still potentially be eligible or liable for dividend payments, so you do need to be aware of the ex-dividend date to prepare for this.  You would receive a cash credit for the dividend less any withholding tax, which is determined by the country of the share.

 

We can't really provide tax advice I'm afraid, and I'd encourage you to check with a third party, but if you are trading on a CFD account then you are likely to be liable for capital gains tax, although losses can be offset again gains in some circumstances.

 

Please do shout if you want to go over dividends in detail, or have any more questions on this.

 

Thanks!

Hannah

[Guest florence]

Hi

 

I need advice on what will happen with a 'dividend' of share payments.

I hold a large SB in GWIK, currently suspended.

As part of an investment by GWIK, GWIK holders are to receive shares in i3energy; due to IPO on 30/6/17.

How will this 'dividend' of shares appear?

Will I have a long position opened? what will it be worth?

I calculate the value of these new shares to be £16,500. Will this worth be reflected in my account? what value will it have if i close it?

Will I be expected to place a margin deposit for these new shares even though I'm not buying them (nor is IG hedging them even); they are being allocated by the broker to GWIK shareholders.

I haven't had much sense out of the email help at IG

[Tri]

It looks like you are on your own... No reply to your query.

[Guest Adrian O]

Hi

I have held some US shares for long enough now to know there should be dividends paid. But I do no see and transactions in my ledger. How do I identify dividends for tax purposes?

[JamesIG]

On 8/3/2018 at 6:29 PM, Adrian O said:

Hi

I have held some US shares for long enough now to know there should be dividends paid. But I do no see and transactions in my ledger. How do I identify dividends for tax purposes?

Hi - you should see a line in the ledger quoting the dividend, the amount per div, and the total value effect on your account. Please note that once dividends are paid, it can take a couple of working days to appear in your ledger. This is because it takes a couple of days for the payment to be received (in much the same way as it takes a couple days for regular payments to go through) from our prime broker. 

Let me know the stock name if the above criteria have been met. 

[Tgpgunner]

Where is my cash ledger showing dividend income please? I should have received three separate dividend payments but can’t see them anywhere. Help centre also says we’re asked whether to reinvest or keep as cash. I’ve not seen that either. Thanks

[Guest Doug]

I purchased some Gold shares in Newmont mining  today. For the value I submitted in UK pounds I received102 shares. I purchased through my IG ISA Share account (not IG Smart Account) as hopefully ISA's are still tax efficient. My questions are:

Is there any tax to pay on this ISA trade? and is this an interest free account "like normal ISA's?

It seems even though I I only purchased today, tomorrow (3/06/2020) a dividend payment is due. Providing I retain those share until after the dividend allocation date then I will receive a dividend - so I need to keep the share at least until 4/06/2020.

I have read some comments on the community forum but I still cannot fine an answer as to how ISA share dividends are paid and like many others where exactly will I be able to see the amount payable which I'm hoping will be a cash payment into my account rather than a Cash adjustment as discussed for spread betting. Can anyone please help as I am a novice to all this jargon.

Thank You