Dividends are the way the Company makes distributions from its profits available for distribution to shareholders. Compass Group currently pays dividends twice a year, an interim dividend which is approved by the directors and a final dividend which is recommended by the directors and presented to the shareholders for approval at the AGM. A dividend is paid for each share, so the amount you receive depends on the number of shares you own at the record date. It can be paid in cash or used to buy more Compass Group shares through the Company's dividend reinvestment plan (DRIP), more details of which can be found below.
‘Record date’ and ‘ex-dividend’ date
A dividend is paid based on the number of shares held on the share register at the record date. The record date is the date on which shareholders whose names appear on the Register of Members at the close of business on that date are entitled to receive a dividend. If you receive a dividend and are not sure if you are entitled to it, you should contact the agent who sold your shares for you.
The ex-dividend date is a specific date, occurring after the dividend has been declared, after which buyers are no longer entitled to receive the last declared dividend. This is known as going 'ex-dividend', prior to this date the shares are said to be 'cum-dividend'. If you buy shares before the ex-dividend date, you are entitled to the recently declared dividend. If you buy shares on or after that date, the previous owner
of the shares (and not you) is entitled to the dividend.
Payment of dividends
i) You can have cash dividends paid directly to your bank or building society account,
or receive a cheque at your registered address.
If dividends are paid direct to your bank or building society account through the BACS system, it avoids the risk of cheques being lost in the post and your dividend will be in your account on the day the payment is made. To have dividends paid directly to your bank or building society account simply complete and send the Request for Payment of Interest or Dividends Form to Capita Asset Services.
In previous years, normally in February of each year, Capita Asset Services may have sent you a single consolidated tax voucher setting out details of all dividends paid in the previous tax year. From 6 April 2016 the Dividend Tax Credit will be replaced with a new Dividend Allowance and as a result, the single consolidated tax voucher will be replaced by an annual Dividend Confirmation issued by Capita Asset Services.
ii) You can elect to use your cash dividend to buy more Compass shares under the DRIP. On or about each dividend payment date, Capita Registrars will calculate the number of shares that can be bought with your dividend at current market prices (after deduction of costs and expenses) and then purchase this number of shares on your behalf. Any cash balance remaining after the purchase of shares will be retained, without interest, and added to your next quarterly dividend.
For more information about the DRIP and details of how to participate, please contact the Capita Registrars helpline on 0800 280 2545, email them at firstname.lastname@example.org or visit www.capitashareportal.co.uk.
Dividends are announced net of tax.
From 6 April 2016 the Dividend Tax Credit will be replaced with a new Dividend Allowance. Please note that notwithstanding the change in tax regulations from April 2016, you will still need to retain all tax vouchers for the six years predating the change for the purpose of self-assessment. From 6 April 2016 onward, the dividend tax voucher will be replaced by a Dividend Confirmation which you will also need to retain for a period of six years for the purpose of self-assessment.
To understand how you are affected by the changes and for further information visit the HMRC website at:
Tax legislation can change from time to time and if you are in any doubt as to your tax position, whether in relation to the receipt of a dividend or arising from your purchase of shares under the DRIP, you should contact a suitably qualified professional adviser.
If you lose your tax voucher or dividend confirmation, contact Capita Asset Services, detailing which voucher(s)/confirmation(s) have been lost. Capita will issue you with duplicates on payment of an administration charge. Other charges may also apply.