Has anyone found a practical solution for receiving small…
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Has anyone found a practical solution for receiving small overseas dividends when international cheques can’t be cashed?
I’m hoping someone here has encountered this and found a workable solution.
I hold a relatively small parcel of shares in an overseas-listed (UK) company (inherited from late grandparents). The investment itself isn’t the issue - it’s how the dividends are paid.
The problems I’ve run into are:
The company only pays dividends by international cheque (or at least doesn’t offer direct payment to an overseas bank account).
It doesn’t offer a Dividend Reinvestment Plan (DRIP).
Australian banks no longer seem willing to cash international cheques.
I looked at using a cheque collection/payment broker, but the fees were greater than (or a significant proportion of) the dividend itself, making it uneconomical.
Selling the shares isn’t really a practical option at the moment either, as the brokerage and transaction costs would outweigh the value of the holding.
It feels like I’m stuck in a catch-22. I own the shares, the company is paying dividends, but there doesn’t seem to be a practical or cost-effective way to receive them.
Also, I’ve received a letter from the share registry - advising that because my account has been dormant for years, that they may sell the shares - and take the funds.
I’m interested to hear from anyone who has been in a similar position.
Which company or share registry was involved?
Did you manage to switch to electronic payments, despite being an overseas shareholder?
Is it possible to request that dividends be accumulated and paid as a single annual cheque or payment, rather than several small ones?
Are there any registries ct or brokers that can facilitate this at a reasonable cost?
Is there another solution I’ve overlooked?
I’d appreciate any suggestions or experiences. It seems like this must affect quite a few international investors, particularly now that many banks no longer process foreign cheques. Being threatened with the prospect of having the shares sold and value forfeited doesn’t seem like a fair outcome.
#business
source
I’m hoping someone here has encountered this and found a workable solution.
I hold a relatively small parcel of shares in an overseas-listed (UK) company (inherited from late grandparents). The investment itself isn’t the issue - it’s how the dividends are paid.
The problems I’ve run into are:
The company only pays dividends by international cheque (or at least doesn’t offer direct payment to an overseas bank account).
It doesn’t offer a Dividend Reinvestment Plan (DRIP).
Australian banks no longer seem willing to cash international cheques.
I looked at using a cheque collection/payment broker, but the fees were greater than (or a significant proportion of) the dividend itself, making it uneconomical.
Selling the shares isn’t really a practical option at the moment either, as the brokerage and transaction costs would outweigh the value of the holding.
It feels like I’m stuck in a catch-22. I own the shares, the company is paying dividends, but there doesn’t seem to be a practical or cost-effective way to receive them.
Also, I’ve received a letter from the share registry - advising that because my account has been dormant for years, that they may sell the shares - and take the funds.
I’m interested to hear from anyone who has been in a similar position.
Which company or share registry was involved?
Did you manage to switch to electronic payments, despite being an overseas shareholder?
Is it possible to request that dividends be accumulated and paid as a single annual cheque or payment, rather than several small ones?
Are there any registries ct or brokers that can facilitate this at a reasonable cost?
Is there another solution I’ve overlooked?
I’d appreciate any suggestions or experiences. It seems like this must affect quite a few international investors, particularly now that many banks no longer process foreign cheques. Being threatened with the prospect of having the shares sold and value forfeited doesn’t seem like a fair outcome.
#business
source
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