Dividends

Introduction

Dividends are the way in which the Company makes distributions from its profits to shareholders. In normal circumstances, Rentokil Initial pays dividends twice a year, and the level of each dividend is decided by the Company's directors. 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 shares.

Dividend payment

The Directors have recommended a final dividend of 2.38p per share, for the 52 weeks ended 31 December 2016. Payment of this dividend is subject to approval at the 2017 Annual General Meeting. When taken with the interim dividend of 0.99p per share paid on 14 September 2016, this gives a total dividend of 3.37p per share (2015: 2.93p). The final date to elect to participate in the DRIP for the final dividend is 22 April 2017.

Dividend history

  Payment date Payment rate Record date Year end date
2016 Final Dividend
17 May 2017
2.38p 7 April 2017 31 Dec 2016

2016 Interim Dividend

14 Sept 2016
0.99p
12 Aug 2016
31 Dec 2016
2015 Final Dividend 18 May 2016 2.06p 8 April 2016 31 Dec 2015
2015 Interim Dividend 16 Sept 2015 0.87p 14 Aug 2015 31 Dec 2015
2014 Final Dividend 20 May 2015 1.82p 17 Apr 2015 31 Dec 2014
2014 Interim Dividend 16 Sept 2014 0.77p 15 Aug 2014 31 Dec 2014
2013 Final Dividend 21 May 2014 1.61p 11 Apr 2014 31 Dec 2013
2013 Interim Dividend 24 Sept 2013 0.70p 23 Aug 2013 31 Dec 2013
2012 Final Dividend 21 May 2013 1.43p 19 Apr 2013 31 Dec 2012
2012 Interim Dividend 26 Oct 2012 0.67p 14 Sep 2012 31 Dec 2012
2011 Final Dividend 15 May 2012 1.33p 10 Apr 2012 31 Dec 2011
2010 Final Dividend No final dividend      
2009 Final Dividend No final dividend      
2008 Final Dividend No final dividend      
2008 Interim Dividend 17 Oct 2008 0.65p 12 Sep 2008  31 Dec 2008
2007 Final Dividend 23 May 2008 5.25p 18 Apr 2008 31 Dec 2007
2007 Interim Dividend 19 Oct 2007 2.13p 14 Sep 2007 31 Dec 2007
2006 Final Dividend 18 May 2007  5.25p 13 Apr 2007 31 Dec 2006
2006 Interim Dividend 27 Oct 2006 2.13p 29 Sep 2006 31 Dec 2006
2005 Final Dividend 02 Jun 2006 5.25p 05 May 2006 31 Dec 2005
2005 Interim Dividend 28 Oct 2005 2.13p 30 Sep 2005 31 Dec 2005

'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, which is one day after the ex-dividend date. 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' and before 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

You can have cash dividends paid directly to your bank or building society account.

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 contact Capita Asset Services.

Capita Asset Services will send you a single consolidated tax voucher, normally in April of each year, setting out details of all dividends paid in the previous tax year

OR

you can elect to use your cash dividend to buy more Rentokil Initial shares under the Dividend Reinvestment Plan ('DRIP'). On or about each dividend payment date, Capita Asset Services 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 dividend.

Changes to Dividend Taxation in 2016

In 6 April 2016, the taxation of dividend income in the UK changed significantly. Prior to these changes a notional tax credit of 10% applied to taxpayers only (i.e. most individual shareholders) while non-taxpayers such as pension funds and shares held in ISAs could not benefit from it. Dividends which were calculated including this notional tax credit are often called gross dividends.

The rules have now changed, abolishing this 10% credit. All taxpayers will have an annual £5,000 tax-free allowance for dividend payments. This makes dividends free of tax for individuals up to £5,000, above which an individual will be taxed at a rate linked to their marginal tax rate. There is no change for non-tax payers. It is not possible for us to reflect the varying tax position of an individual investor. Each individual’s liability to pay tax on dividends will depend on their earning and tax allowance and will be calculated by self-assessment. The main difference will be for individual shareholders receiving between £5,000 and £10,000 in dividend income as they may have to complete a self-assessment for the first time. Those with dividend income of more than £10,000 per annum are already required to self-assess.

For the purpose of self-assessment, HMRC requires that you retain tax vouchers for six years. If you lose your tax voucher, contact Capita Asset Services, detailing which voucher(s) have been lost. Capita will issue you with duplicates on payment of an administration charge.