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What are Unclaimed Dividends?
Dividends are a share of a company’s profits that the company periodically pays to its shareholders. They are typically announced (“declared”) first, and then paid weeks later. They become unpaid dividends when they aren’t collected (i.e. claimed) by shareholders who are eligible for them. In many cases, they aren’t collected for several years. Dividends are unclaimed for various reasons: investors forgetting their holdings in the paying companies; shareholders deciding that the dividend collection process is too tedious; owners getting married and changing their maiden name in which their investments were made; or the death of the stockholder. Note that unclaimed dividends do not generate interest, and will retain the nominal value in which they were originally supposed to be paid out. As such, their real value could be eroded over time due to inflation.How to Recover Your Unclaimed Dividends
Here’s the breakdown of how to retrieve dividends that you or a deceased relative have previously not claimed.Step One: Confirm Unclaimed Dividends
The first thing to do is to confirm that you do indeed have unclaimed dividends. You can do this by visiting the SEC website and entering your name (or the name of a relative whose dividends you are entitled to) in the “non-mandate” page search box. The page is linked HERE. NB: The SEC is the Securities and Exchange Commission, the body that’s legally mandated to regulate investments in Nigeria.Sign up for the Connect Nigeria daily newsletter
If your name (or whatever name you’re looking for) shows up in the search results, you’ll also see relevant details about your holdings with the companies that offered the dividends. Make sure to note information such as the name of the registrar, the company in which you hold shares, and your investment account number.
Step Two: Download and Fill e-Dividend Form
Your next step would be to download your registrar’s e-dividend mandate form. You can obtain this on the SEC portal. Fill the form and email it to your bank, or send it to your registrar’s office. Whichever of these you submit the document to will review it until they are satisfied that your claim should be honoured. If your bank receives your completed e-dividend mandate form, it will send it to your registrar, who will have 72 hours to verify it, according to SEC rules.Step Three: Receive the Dividend
Upon verification, your registrar will transfer your previously unclaimed dividend to the bank account you choose. Be sure to follow up with them if they don’t respond quickly or satisfactorily. There’s always the option of copying the SEC in an email to the registrar if you aren’t getting prompt service delivery.Register to attend the CN Business Mixer
Final Words
Contrary to widespread assumptions, securing outstanding payouts from the companies you’re invested in doesn’t have to be a hassle. You just need to know how to get your unclaimed dividend the right way. This article has explained the steps you can take to do so. You may initiate the process starting now by checking for your name on the SEC’s page linked in this article.Got a suggestion? Contact us: [email protected]
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