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.
The Board has declared an interim dividend for 2016 of 0.99p per share, payable on 14 September 2016 to shareholders on the register on 12 August 2016. The final date to elect to participate in the DRIP for the interim dividend is 20 August 2016.
'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
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
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.