Dividends Notification and Announcements
Listing Rule 7.6(4)(b)(iv) requires Listed Issuers to:
‘notify the Authority immediately after approval by or on behalf of the board of directors or equivalent governing body of the investment vehicle:
a) any decision to declare, recommend or pay any dividend or to make any other distribution on its listed securities and the rate and amount of the dividend or distribution;
b) any decision to withhold any dividend or interest repayment on listed securities;
c) any decision not to declare, recommend or pay any dividend that would otherwise have been expected to have been declared, recommended or paid in due course.’
When a Dividend is declared, the Authority would expect this dividend information to be notified to the Authority and an announcement made prior to the Ex Dividend Date.
As a matter of good practice, the following information should appear in the announcement:
- the dividend amount;
- the currency (this currency should match the base currency on MDMS, for example if the base currency is GBP (Pound Sterling), then the announcement should set out the dividend in GBP and not in GBp (pence));
- the dividend type;
- the Period Date (financial year of the company);
- the Ex Dividend Date;
- the Record Date;
- the Payment Date; and
- any additional information (for example if it is an annual or interim dividend).
Publicly Traded Stocks and Exchange Traded Funds
It must be noted that when the Ex Dividend is set out in the announcement, the Authority would expect the Ex Dividend to take place on or before the Record date. If this is not the case, then a reason for the anomaly should be forwarded to the Authority. In the absence of a stated Ex-Dividend Date from the Issuer, the Authority will set the Ex-Dividend date at two business days before the Record Date.
Open Ended/Daily Dealing Funds.
In the case of open ended funds which value on a forward pricing basis, the Ex-Dividend Date will be expected to usually fall one day after the Record Date.