Dividend payout options

kempiejon

From the Widows' website

'Hold In Account' will retain the dividend in your share dealing account until you take further action.

'Pay Away Immediately' will send collected dividend totals to your nominated bank account shortly after the dividend pay date.

'Pay Away 6-Monthly' will send collected dividend totals to your nominated bank account every 6 months, usually at the end of April and October of each year.

Dividends will usually be paid to accounts within ten working days of us receiving the money. Please note: we will receive the money on, or after, the dividend payment date.

John464

Have you considered accumulator ETFs where the dividends are automatically re invested much more efficiently than you could do it yourself.

With selling fees so cheap now it would probably even be more efficient to hold accumulators and sell as much as you need as and when you want the cash.

You can avoid Forex charges, having cash sitting around earning nothing, and re balance your portfolio.

Just don't bother trying to time the market.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/81857876#Comment_81857876

Just checked, and I can confirm ii credit my GIA account on the dividend payment dates and on the same day pay out to my linked interest bearing current account ( so dividends earning interest immediately )

I would make the additional observation that HL not only hang on to your dividend for up to a month, but sneakily ( in my view) do not credit interest to the associated dividend income account unless you are using their portfolio management service. They specifically state the capital transaction account bears interest, but are silent on the income account position until you do further digging.

This was a particular bone of contention for some large 4 figure Corporate bond interest payments I used to receive every half year, that would be sat in limbo for up to a month, no doubt earning interest for HL when it could just as well be earning interest for me or deployed towards my weekly spending.

ii to be applauded for their rapid turn around in this regard.

george4064

https://forums.moneysavingexpert.com/discussion/comment/81856604#Comment_81856604

https://forums.moneysavingexpert.com/discussion/comment/81857910#Comment_81857910

DRS1 - That is a good point and I will check that with her, however the dividends are rather lumpy and there are occasionally months where no dividends are received (albeit rarely).

John464 - this dividend income is largely surplus to requirements and helps encourage Mum to spend a bit more in retirement. With at in mind, I’d rather the process is automated as much as possible (money being paid to her bank account). I do agree that would probably yield higher overall performance, but sometimes other factors are more important.

aroominyork

https://forums.moneysavingexpert.com/discussion/comment/81858507#Comment_81858507

On the second point of selling accumulation units (I really do not like the forum no longer letting us quote selected parts of previous posts), that might force you to sell units during a market crash. If you want regular income you are better off taking the natural yield.

dales1

"(I really do not like the forum no longer letting us quote selected parts of previous posts)"

Maybe cut and paste and put in quotes and italicise.

But yes it is tedious.