Dividend reinvestment on free shares

[dolph999]

Can anyone please tell me is it possible to reinvest the dividends on the free shares we got, I know you can do it on ordinary shares purchased through equiniti but I havent found a way to reinvest the free shares dividends

[solar_plexus]

No.

viewtopic.php?t=63059

The only workaround is to transfer them out of the SIP.

[dolph999]

Cheers bud

[rambo1]

.....plus, there are no divis.

[solar_plexus]

... but there may be in the future.

[RobertT]

Reading a few internet articles about RM dividends, it seems likely they will be reinstated for the 2021/22 financial year, meaning the first one would be paid around January 2022.

Although it has also been mentioned there might be one relating to the current year(20/21) aswell. In which case we'd get that around July/August 2021.

But they're unlikely to be as high as they were before.

[solar_plexus]

I won't be surprised if they reinstate them for this year (2020/21), many companies who suspended dividends last year have already restarted them. At least 25p per share is my prediction. (25p was the total dividend paid for 2018/19.)

[Alexei]

Optimistic look, but I personally think they may be lower than previous to focus on R&D, which if RM get right ( ), the financial future could be very fruitful.

Going back to the DRIP, you'd need to transfer all available shares to the corporate sponsored nominee (CSN). Best to leave the last batch of free shares issued around October 2016 in the SIP as you'll be eligible to pay tax & NI on them as these are still 'conditional'. Once the 'available' shares are transferred, then opt for DRIP. Alternatively you could wait til Oct 2021 and transfer all free shares over to the CSN in the one transaction. I don't know if Equiniti charge a fee for transferring though.

Not providing financial advice here, just two approaches.

[RobertT]

I won't be surprised if they reinstate them for this year (2020/21), many companies who suspended dividends last year have already restarted them. At least 25p per share is my prediction. (25p was the total dividend paid for 2018/19.)

25p is very optimistic!
Personally I think if there is a dividend this year(20/21), it'll be around the 6 – 8p range, with a total dividend for 21/22 of no more than 15 – 17p.

[rambo1]

I won't be surprised if they reinstate them for this year (2020/21), many companies who suspended dividends last year have already restarted them. At least 25p per share is my prediction. (25p was the total dividend paid for 2018/19.)

25p is very optimistic!
Personally I think if there is a dividend this year(20/21), it'll be around the 6 – 8p range, with a total dividend for 21/22 of no more than 15 – 17p.

IMO a 5% dividend yield is not gonna happen this yr, especially when they have so much investing to do back in the business. There's not many companies in the UK yielding 5% ATM.

[RobertT]

I won't be surprised if they reinstate them for this year (2020/21), many companies who suspended dividends last year have already restarted them. At least 25p per share is my prediction. (25p was the total dividend paid for 2018/19.)

25p is very optimistic!
Personally I think if there is a dividend this year(20/21), it'll be around the 6 – 8p range, with a total dividend for 21/22 of no more than 15 – 17p.

IMO a 5% dividend yield is not gonna happen this yr, especially when they have so much investing to do back in the business. There's not many companies in the UK yielding 5% ATM.

Yes, my 1.5% for this year is far more realistic. That's even if there is a dividend.

[wacko74]

From a long term shareholder and share price point of view, rather than a reinstatement of a divi I'd prefer to see RM use some of the last 12 months additional income/profit to speed up the completion of the automated parcel hubs which currently seem to have a ridiculously slow build time and projected completion date of 2023.

[rambo1]

Parcels will have probably dropped by the time they get em up and running. Always one step behind the curve. Talking of dropping CSS machines, now mail is up. Couldn't write it.

[heapsy]

Optimistic look, but I personally think they may be lower than previous to focus on R&D, which if RM get right ( ), the financial future could be very fruitful.

Going back to the DRIP, you'd need to transfer all available shares to the corporate sponsored nominee (CSN). Best to leave the last batch of free shares issued around October 2016 in the SIP as you'll be eligible to pay tax & NI on them as these are still 'conditional'. Once the 'available' shares are transferred, then opt for DRIP. Alternatively you could wait til Oct 2021 and transfer all free shares over to the CSN in the one transaction. I don't know if Equiniti charge a fee for transferring though.

Not providing financial advice here, just two approaches.

I transferred the first lot of free shares a while back. The second and third I've left until the third are free to move. I did this because I was charged £10 to transfer out, and don't think its worth doing the same on the last allocation of just 81 shares on their own. The ones I transferred earlier started to get dividends which were reinvested, so growing the pot as it were. I intend to do this with the rest, as and when dividends return.

[RobertT]

Dividend of 10p payable on 6th September, pending approval.