What are dividends and when do I receive them?

These are payments that Vodafone pays to you as a shareholder. They are paid twice yearly usually in February and August. A dividend is paid for each share, so the amount you receive depends on the number of shares you own. To receive the dividend, your name must be on the share register on the relevant dividend record date. If the shares are sold before the ex-dividend date or purchased after it, you will not be entitled to that dividend.

What does 'ex-dividend' mean?

Before announcing each dividend, and in consultation with the London Stock Exchange, we set a date on which shares will be sold without entitlement to the dividend - known as going ‘ex-dividend’. Before that date they are said to be ‘cum-dividend’, i.e. they have entitlement to the dividend.

Anyone who buys a share before the ex-dividend date is therefore entitled to receive the dividend recently announced. If you purchase on or after that date the dividend most recently announced is payable not to you but to the previous owner.

The dividend is paid to shareholders on the number of shares held at the record date. The record date is usually one day after the ex-dividend date. If you receive a dividend having recently sold your shares and are unsure whether you are entitled to it, contact the agent who acted on your behalf in the sale. Depending on the terms of the sale, the dividend may be due to the new owner.

How can I have my dividends paid?

With effect from February 2010, Vodafone pays cash dividends by direct credit only. In order to receive your dividends directly into your bank account on dividend payment date, you will need to register your bank details on our Registrars' website, investorcentre.co.uk. You will need your 10 digit Shareholder Reference Number (SRN) which starts with the letter I, C or G to log in. This can be found on your share certificate(s) and dividend confirmation. If you are unable to register details online, please contact our Registrars on 0370 702 0198 for the appropriate dividend mandate form. 

Please note:

  • If you do not register your bank details at least 3 weeks prior to the dividend payment date, your dividend will be held for you as a non-interest bearing deposit and, depending on the value of the outstanding payment, you will be liable for an administration fee when we do receive your bank details and are in a position to pay the dividend to your nominated bank account. The fee will be deducted from the dividend due to you.
  • Shareholders who are resident in the UK automatically receive their dividends in pounds sterling - provided that UK bank account details are supplied.

  • Shareholders who are resident in the Eurozone automatically receive their dividends in euro provided that euro bank account details are supplied. Elections to receive pounds sterling instead are permitted provided that UK bank mandate details are lodged.

  • Shareholders outside the Eurozone automatically receive dividends in pounds sterling by lodging UK bank account details but may elect to receive dividends in their local currency by registering at investorcentre.co.uk for Global Payments Service.

 

Who should I contact if I have lost a dividend cheque?

If you have lost an historic dividend cheque you should contact our Registrars as soon as possible. They will arrange for the cheque to be stopped and then send you the outstanding payment(s) direct to your bank account, provided bank details have been supplied. Please note there may be an administration fee for this service (fees do not apply if the value of the outstanding payment(s) is less than £30 or €40).

What should I do if I have found an out-of-date dividend cheque?

Please contact our Registrars. If the payment has not previously been reissued they will arrange for the outstanding amount(s) to be sent direct to your bank/building society account, provided details have been supplied. Please note there may be an administration fee for this service (fees do not apply if the value of the outstanding payment(s) is less than £30 or €40).

What about my dividend confirmation?

Provided you have registered your email address with our Registrars, an electronic dividend confirmation will be sent to you by email at the time of each dividend payment. If you do not provide an email address, we will send you a paper annual dividend confirmation each February. Your dividend confirmation will state details about both dividends paid during the tax year and how the amounts were calculated.

Who should I contact if I have lost my dividend confirmation?

If you require a replacement dividend confirmation, please inform our Registrars, who will arrange for a duplicate to be sent to you. There is a fee for this service.

Do I have to pay tax on my dividends?

With effect from 6th April 2016 the 10% tax credit on dividends has been replaced with an individual annual tax free allowance of £5,000 across all dividend income, above which there is a tax liability. This is for 6th April 2016 to 5th April 2017. For further information, please visit the HMRC.gov.uk website. For queries about your own tax position, please speak to an independent tax advisor.

Can I buy Vodafone shares with my dividend?

The Company operates a Dividend Reinvestment Plan (DRIP), which gives shareholders the opportunity to acquire additional Vodafone shares in a cost-effective way by re-investing their cash dividend. The plan is available to all shareholders provided that they do not live in or are subject to the jurisdiction of any country where their participation in the plan would require Vodafone or the plan administrator to take action to comply with local government or regulatory procedures or any similar formalities.

Shareholders wishing to join the DRIP should ensure that their completed mandate form (which can be obtained from the website of our Registrars) is received by the plan administrator no later than 15 working days before the dividend payment date for it to be applicable. Having joined the DRIP, dividends will continue to be reinvested until the plan administrator receives written instructions requesting withdrawal from the DRIP.

For full terms and conditions and or a mandate form please contact our Registrars.

How does the DRIP work?

The DRIP allows you to buy shares in Vodafone Group Plc in the open market using your cash dividend. The Company’s Registrars will arrange for as many shares as possible to be purchased on your behalf, as soon as reasonably practical and in any event within three days after each dividend payment date.

The DRIP will be operated on a mandated basis; in other words, your election to participate will apply to all future dividends until you cancel or otherwise terminate your mandate or sell/transfer your shares.

What are the costs?

There will be an administration charge of 0.75% of the total value of your dividend payment reinvested in shares (a minimum dealing charge of £2.50 will be applied). You will also have to pay stamp duty reserve tax at the prevailing rate - currently 0.5% of the value of the shares acquired (the £5.00 minimum duty will not apply). The total of these charges is 1.25%, and this will be deducted automatically from the amount to be reinvested in shares.

For example, if a £50.00 dividend is used to buy shares for you, £6.25 will be deducted to cover administration and dealing costs and stamp duty reserve tax.

At what price will the shares be bought and how many will I receive?

The number of shares you will receive will depend on the market price of Vodafone Group Plc shares at the time the shares are bought. You cannot specify a maximum or minimum price. This service is on an execution only basis. This means that our Registrars cannot give you any investment advice on transactions, nor will our Registrars be able to provide any other services under the DRIP agreement. Please contact our Registrars for documentation and full details of the service.

What happens to any money left over after the shares have been bought?

Any cash dividend remaining after the share purchase, which was insufficient to purchase a whole share, will be carried forward and added to future dividend payments for reinvestment in Vodafone Group Plc shares under the terms of the DRIP. All monies that are held for you will be held in a client bank account, which our Registrars maintains for participants of the DRIP. Interest is not paid on any such monies.

Any outstanding balance over £3 will be repaid in the event of the sale or transfer of your shares or your withdrawal from the DRIP. An amount of less than £3 will be donated to charity unless you contact our Registrars to request its return.

Will I still receive a dividend confirmation?

You will be sent a dividend confirmation covering the whole amount of your cash dividend. For self-assessment purposes, HM Revenue & Customs in the UK requires you to retain dividend confirmations for six years.

How will I know how many shares have been bought for me?

The share purchase advice and the share certificate (where appropriate) will be posted to you within 15 working days of the dividend payment date. If you hold your shares in the Vodafone Share Account (VSA) your shares will be credited to your account.

The share purchase advice will show the number of shares acquired, the purchase price and the associated costs. Shares purchased on your behalf will be registered in your name and you will be sent a share certificate if your shares are certificated.

What happens if I subsequently buy or sell Vodafone shares outside the DRIP?

If you buy or sell shares, the DRIP election will apply to the increased or reduced holding. All shares acquired by a DRIP participant will be included automatically with effect from the date of their registration. Please note that it may take several days after the date of purchase to register the new shares.

What happens if I am a sponsored member of CREST?

If you hold your Vodafone Group Plc shares in a CREST account the shares will be credited to it. You will be sent a CREST statement instead of a share certificate together with your dividend tax voucher.

What should I do if I do not want to join the DRIP?

If you want to continue to receive a cash dividend and do not want to reinvest your dividend, then you need take no action.

Can I join the DRIP for just some of my shares?

No, for administrative reasons, you may only participate in the DRIP for the whole of your shareholding in Vodafone Group Plc.

The only possible exception would be for very large institutional shareholders with shares held on behalf of a number of beneficiaries. The Company may, at its discretion, permit such a shareholder to reinvest the cash dividend payment on a lesser number of shares than the full holding where such a shareholder has provided a written notification of their requirements. Such part reinvestment will apply to the dividend on that number of shares until it is altered or cancelled. The remaining cash dividend will automatically be paid on the shares that are not included in the DRIP.

Note, under our new dividend policy whereby we declare dividends in Euros, any shareholder making a partial DRIP election will receive their cash element in GBP, even if the holder is EU based or otherwise makes an election for Euros.

Can I withdraw from the DRIP?

You may withdraw from the DRIP at any time by contacting our Registrars. Your notice of withdrawal from the DRIP must be received not later than 15 working days prior to the payment date for a dividend if you do not wish to be included in the DRIP for that dividend. Where proper notification is received by our Registrars of a participant’s death, bankruptcy or mental incapacity, that participant will cease to participate in the DRIP unless the participant was a joint holder, in which case the DRIP will continue for the remaining joint shareholder.

Income tax: You will be liable for income tax on dividends reinvested in the DRIP on the same basis as if you had received the cash dividend in full and arranged the investment yourself. You should therefore include the dividend on your self assessment return. If you are a higher rate taxpayer you will also be required to pay the extra 22.5% (over the 10% tax credit) when you settle your overall tax bill for the year. With effect from 6th April 2016 the 10% tax credit on dividends has been replaced with an individual annual tax free allowance of £5,000 across all dividend income, above which there is a tax liability. For further information, please visit the HMRC.gov.uk website. For queries about your own tax position, please speak to an independent tax advisor.

Capital gains tax: You may be liable to tax on any capital gain you make if you dispose of the shares. If you are not sure how this will affect you, please consult an independent financial adviser authorised under the UK's Financial Services and Markets Act 2000. Tax legislation can change at any time.