Equity ISA Dividend Question

xnetco

Hello All.

I have a random ISA question that I can't find an answer too.

I've just sold my equity ISAs and I'm wondering what happens to the dividend that I would normally be paid. Surely I'm owed something for the past few months since the last payout or do I forfeit it for selling the investment?

Thanks

Tim

JoeCrystal

The dividends are only paid out to these who hold shares on certain date (Record Date). For example, if you hold National Grid shares on fifth of June this year, you will get dividend on nineteenth of August. However, the ex-dividend date is few days before record date that when buying shares on that date will not entitle you to the coming dividend.

EDIT: I might misunderstood your post. I assumed you meant Stocks and Shares ISA and you was holding shares within it. If this is not the case, then please disregard the post.

EdInvestor

The ISA provider should forward any dividends you are entitled to to your bank account when they are paid later.

RayWolfe

If you sold units before the ex-dividend date, the value of any underlying dividends would be included in the value of the units. You will have noticed that the value of units decreases on ex-div date as the value passes from the capital value to the dividend.

xnetco

Thanks for the reply guys. I'll have to see what Legal and General decide to do. I think they usually pay out in October. Anyway, more importantly, I hope the market drops.