Dividend Payment and Settlement

Hello there,

I want to understand something about “Awaiting settlement” and “Dividend Payment”.

I have bought TDGB (VanEck Ms Developed Markets Div Lead) shares the 1st of September.
07-Sep-22 was the “Ex-Dividend Date”
14-Sep-22 was the “Payment Date”
As of today, my purchase is still “Awaiting settlement”.

Will the dividend be paid to me or not in this case?

Hi @RaAl

The settlement of the purchase won’t affect your dividend eligibility. If you bought it before the Ex-date (as you outlined above) you’ll be eligible to receive the security.

I haven’t had a chance to look at TDGB (I’ll follow up with our Ops team today). But I suspect the delay is due to the of admin, clearing and reconciliations steps that need to happen before it shows in your account (there’s also a claims process we sometimes have to follow on our side).

Hello there,

I have just received my first dividend in InvestEngine.
Unfortunately, it is considerably lower than what I was expecting from my calculations.

  • The 01-Aug-22 I bought 11.5171 shares of TDGB @£28.11 = £323.69
  • The 01-Sep-22 I bought 3.927401 shares of TDGB @£28.41 = £111.58
  • The 07-Sep-22 was the “Ex-Dividend Date”
  • The 14-Sep-22 was the “Payment Date”

The dividend value was EUR 0.32 (source: TDGB Dividends - VanEck ETFs)
which is equal to GBP 0.28 (source: https://www.justetf.com/uk/etf-profile.html?query=NL0011683594&groupField=index&from=search&isin=NL0011683594#dividends)

11.5171 + 3.927401 = 15.444501 Shares owned

15.444501 Shares x GBP £0.28 dividend a share = £4.32446028

The dividend I received was just £3.65 instead (£0.23633 a share).
I understand some currency exhcange fee, but 15.5964% is quite a discrepancy. This can add up quite quickly with all dividends and overtime.

Can anyone explain me this particular case please?

Thanks

I’m not in Investengine, but I know there is 15% withholding tax on Dutch etf dividends which explains most of the seeming discrepancy. The rest (2p) is probably just that the exact EURO to GBP exchange rate doesn’t result in quite exactly 28p per share dividends. Hope this helps.

I got the same dividend payout as you i.e. roughly 15% less than you might expect. A quick Google search does indicate that there is such a thing as a Dutch 15% withholding tax, but whether this is the explanation needs input from someone with more expertise than me.

BTW, the dividend data hyperlink you provided has a link at the bottom of the page that will do the Euro/GBP conversion for you.

Yeah it is definitely the Dutch withholding tax.

Kinda difficult keep track of these details for every fund in different jurisdiction.

Does anyone know a reliable source/website when it is possible to find simply net dividend payment per fund?

It is crucial for my investment calculations and monthly choices. I didn’t account for this unexpected 15% extra tax for the TDGB found for example.

Thanks all for your answers btw.