Scrip Dividends in Share ISA

veloo

well, i don't have a lot of shares and i don't trade regularly. i just buy and keep them. if i have to pay a regular amount to someone just to hold shares, my capital would keep going down. i found a few who offer no annual fees or admin fees or inactivity fees for isa or share dealing account.

what might be any disadvantages of crest accounts, , and are they mutually exclusive from normal isa or share accounts? how would i find out who offer these crest accounts?

cheerfulcat

veloo wrote: »

well, i don't have a lot of shares and i don't trade regularly. i just buy and keep them. if i have to pay a regular amount to someone just to hold shares, my capital would keep going down. i found a few who offer no annual fees or admin fees or inactivity fees for isa or share dealing account.

what might be any disadvantages of crest accounts, , and are they mutually exclusive from normal isa or share accounts? how would i find out who offer these crest accounts?

Hi veloo,

I think that I have unintentionally misled you - shares held in an ISA must be held in a nominee account.

It's a while since I looked at Crest personal membership accounts but if you are worried about costs they won't be for you anyway.

veloo

cheerfulcat wrote: »

I think that I have unintentionally misled you - shares held in an ISA must be held in a nominee account.

dear cheerfulcat, appreciate you clarifying your position. but you have not misled me at all, and i did not get that understanding. you and the other posters were quite clear that i could not utilise the scrips with demat shares. hence, i was wondering whether i had any advantages to demat'ing my paper shares.

i refer to your above post. i think it was quite clear that scrip facility was not available within an isa.

cheerfulcat wrote: »

No, you can't hold certficated shares in an ISA but the Crest account has the same effect - the shares are held in your name and if a scrip scheme is offered by the company whose shares you hold, the broker should be able to hold the scrip shares as well.

cheerfulcat wrote: »

It's a while since I looked at Crest personal membership accounts but if you are worried about costs they won't be for you anyway.

i think this clears another query. i'm worried about costs eating into my capital. this is one of the reasons i don't have any mutual funds. and i think i have made better returns than most mutual funds, in the past few years. ;-)

thanks once again, for your helpful posts.

sabretoothtigger

iii sent me a message on scrip dividend. Every quarter they give me new Santander shares instead of cash and I dont have to pay for that, shame then that santander barely goes up that often

Lloyds also did a scrip div. Halifax too before they got delisted

BANCO SANTANDER - Important Information



The Company has announced the details of its shareholder remuneration program, 'Santander Dividendo Eleccion', for February 2011.

The Program allows shareholders to benefit from favourable tax-treatment by receiving the payment of their dividend in the form of New Banco Santander Ordinary shares. Alternatively, the dividend can be received in the form of a cash payment which is subject to 19 percent Spanish Withholding Tax.

Having considered the tax implications of receiving the cash payment and the short timescales imposed by the Company, we will be applying the default election (to receive payment of the dividend in the form of additional Ordinary shares) for all Banco Santander shares held within our Nominee.

The Company has allocated Allotment shares whereby you have received 1 Allotment share for each Existing Banco Santander share held on the Ex-entitlement date of 17th January 2011. Payment of the 'Santander Dividendo Eleccion' will be affected on the basis of 1 New Banco Santander Ordinary share for every 65 Allotment shares held.

The Program received shareholder approval at the Company's Annual General Meeting held on 11th June 2010.

The New Ordinary shares arising under the Scheme are expected to be credited to your account on or after 7th February 2011. We will however, notify you when the New Ordinary shares have been credited to your account.

Unless you hold your shares in a ShareBuilder account, no fractions of New Ordinary shares will be issued. Holders with less than 65 Allotment Rights or a holding not equally divisible by 65 will receive a cash payment in lieu of their entitlement to a New Ordinary share. We will notify you in due course once any entitlement to a fractional payment has been credited to your account.

Further details regarding the Program can be obtained at the Banco Santander website, https://www.santander.com/shareholders.

Whats that work out to, 6% yield ? Its quarterly, so 4(1/65)

11.2p per share or if the price went back to £10 that'd be a 61p per year worth given which on current price is 8.3% yield but thats cheating so no wonder they prefer scrips

veloo

sabretoothtigger wrote: »

iii sent me a message on scrip dividend. Every quarter they give me new Santander shares instead of cash and I dont have to pay for that, shame then that santander barely goes up that often

thank you! the message quite clearly says that iii will accept scrip dividends into your account.

Quote:
Having considered the tax implications of receiving the cash payment and the short timescales imposed by the Company, we will be applying the default election (to receive payment of the dividend in the form of additional Ordinary shares) for all Banco Santander shares held within our Nominee.

now i wonder why they told me they do not accept scrip dividends. unless the agent i was emailing back & forth wasn't clear.

sabretoothtigger wrote: »

Lloyds also did a scrip div. Halifax too before they got delisted

banks were always the best ones out there for manipulating their accounts. when any company starts to eat their dividend, it always sounds suspicious to me. and i let it go at the first hint of suspicious activity in a company. or find myself holding dud shares.

fudging accounts is easy. paper transactions are only that... it is when a cash transaction is needed, that differentiates the talkers from the doers. i think i should be thinking about taking cash instead of scrips. thanks!

sabretoothtigger wrote: »

Whats that work out to, 6% yield ? Its quarterly, so 4(1/65)

11.2p per share or if the price went back to £10 that'd be a 61p per year worth given which on current price is 8.3% yield but thats cheating so no wonder they prefer scrips

hmmm... i think you just confirmed what i was thinking above. if everything went back to pre-2008, it'd seem so different. santander has been one of the better behaved ones in that sector, even though i think they acquired a bad apple with abbey.

we need a recession every few years to rot out some of the dead-wood, and clean the economy. there are so many (supposedly) blue chips out there hanging on a thread, not daring to breath, hoping the good times come back... so they can go back to their old ways!?! usually, we only have their cooked accounts to go by.