Remember the article I wrote about bounced debit orders? I changed banks sometimes last year and due to the timing of the account, my banking got a bit mixed up resulting in some of my debit orders bouncing.
What I never thought of though is, if there is something else I must have checked. I should have updated my banking information with any institution I was expecting a payout for something. In my case, since I have shares in Letshego in my portfolio, I missed the last dividend payout they made.
This morning, I saw that they are declaring another dividend to the shareholders and I am potentially missing out on the distribution of N$145 if I do not update my banking information. So what should you do if you have invested in shares and your bank accounts no longer works:
1. Pull up your share documents and find out who your transfer secretaries are. These are the people that you should be contacting when you have any issue with dividends, shares, updating of information etc. They normally include the contact emails as well as telephone numbers.
2. Know what your holder numbers is as that is the reference number that you need to make any inquiries. You also get this from the share documents you signed at the time of buying the shares
3. To update your banking information, you will need to provide a proof of residence (e.g lease agreement or municipal bill), bank letter confirming your new details and a certified copy of your ID.
If that is in order, all you need are the following keys dates:
- The declaration date: This is the date that the directors resolves that they will be paying out dividend during the year and the amount they will be paying per share.
- Cum dividend date: This is the date by when you should have the shares before being entitled to the upcoming dividends. This is to ensure that if you buy the shares only after this date, you will not be benefiting from any dividend declared before this date. Any date after this, will then make it ex- dividend date (i.e without dividend rights)
- Registration date: This is to establish exactly who is a shareholders at this date for the company to sort out the payment logistics. This is necessary as shares listed on an stock exchange can change ownership daily.
- Payment date: This is when you can expect to get the money in your account. Only after this date has passed, then you can be worried about whether or not they maybe might have missed you. Remember inter-bank payments can take hours to process so I would recommend you only follow up after a day or two.
Keep your banking information up-to date , you might miss very important things.