All registered shareholders are eligible for DRIPs but certain companies may not allow shareholders from different countries to participate due to legal and administrative laws of their country.
Q: What are dividends?
Dividends are an amount proposed by the directors of the Company to pay out a portion of the company’s profits to the shareholders. Dividends are quoted based on per share basis. These dividends are an income to the investors and therefore taxable.
Q: Do I have to pay taxes on the dividend?
Yes, dividends are taxable income for the individual investors. On sale of shares capital gains have to be calculated and assessable for tax.
Q: Can I receive my dividends in currencies other than local currency?
Yes some shareholders can receive their dividends through pounds sterling by using the exchange rates applicable.