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ASX Dividends

Discussion in 'Shares' started by MasterCheif, 10th Jun, 2008.

  1. MasterCheif

    MasterCheif Active Member

    Joined:
    22nd Sep, 2007
    Posts:
    43
    Location:
    Melbourne
    Hi All,

    The SLF Divendends state on the ASX website are as follows -
    SLF 14.8588c 31/12/2007 07/01/2008 07/03/2008 0% Interim 9.1070C TAX DEF DRP SUSPENDED
    SLF 18.0207c 31/03/2008 04/04/2008 03/06/2008 0% Interim 12.1446C TAX DEF D.R.P. SUSPENDED

    Does D.R.P. SUSPENDED mean that the dividends wont be reinvested if you selected this option and therefore the dividends will be paid in cash (e.g. cheque sent out?). How does DRP work if it was active? How many units would one receive?

    Many Thanks.
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi MasterCheif,

    Does D.R.P. SUSPENDED mean that the dividends wont be reinvested if you selected this option and therefore the dividends will be paid in cash (e.g. cheque sent out?).​

    Correct.

    How does DRP work if it was active?​

    The company will issue a DRP price, which sometimes can be cheaper than the market price (eg, 2.5% possibly, though all companies are different)

    How many units would one receive?​

    This would depend on your dividend to be paid divided by the DRP price.

    Cheers,

    Dan
     
  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    ... and more specifically is the amount of dividend to be paid (shares or units held * dividend amount), divided by the dividend reinvestment price.

    Eg: if you have 10,000 shares and the dividend paid is 5c per share, you get $500 dividend. If the dividend reinvestment price is $1.25, then you get 400 new shares allocated.

    The best part is that you don't pay brokerage on the automatically reinvested shares via DRP.