No More Paper Dividend Warrants!
According to recent reports reaching us, the SEC has given a stipulation that effective July 1 st 2017 dividends are to be paid directly into the bank accounts of shareholders. This means that any dividends declared after July 1 st 2017 will not be issued or printed on paper. The implication is that any shareholder who doesn’t have an e-dividend mandate on his account is going to lose his dividends. I don’t know how that is going to work but if the BVN registration is anything to go by, many people are going to shed tears. However, with the e-dividend mandate service the dividends can be credited to the your account instantly if you are a shareholder. This provides a win-win situation for stockholders and companies because the shareholder gets his dividends when due even if he did not know that dividends were declared. On the other hand the companies will increase the confidence of their investors and thereby secure increased investments. Then the SEC herself ...