DRIP - Value Your Business & Time


Q: Who is eligible to invest in DRIPs?
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.