Sharesave scheme

traceyaj

Hi , asking on behalf of my son . He pays £300 per month in to a employers sharesave scheme. He will have the right to purchase these shares at the end of the 3 year term which will be during September 2024. The company have announced a special dividend which we think will be paid before the end of this month. 
He wishes to know whether he will receive any benefit from this dividend. 

Mark_d

Short answer is  no.

At the end of the term your son will have the option to purchase shares, at a pre-set price, using the amount of money built-up by his £300 per month payments.  At the moment your son does not own the shares so would not receive any dividend.

Marcon

traceyaj said:

Hi , asking on behalf of my son . He pays £300 per month in to a employers sharesave scheme. He will have the right to purchase these shares at the end of the 3 year term which will be during September 2024. The company have announced a special dividend which we think will be paid before the end of this month. 
He wishes to know whether he will receive any benefit from this dividend. 

To add to the helpful answer above...possibly but not immediately! If the special dividend makes the shares look more attractive to future investors (who hope for a repeat performance), it could drive up the share price - but he can still purchase at the 'option' (discounted) price.