You could be one of thousands of South Africans owed unclaimed dividends. The JSE recently launched the Claim It campaign to help shareholders claim what’s rightfully theirs.
Right now, there are thousands of South Africans who could be owed unclaimed dividends from listed companies such as Old Mutual, Sasol and Naspers, just to name a few. You or one of your friends or family members could have money due to you.
Research from the Financial Sector Conduct Authority (FSCA) shows that there is nearly R88.56 billion in unclaimed assets across the financial sector, with R4.5 billion of these assets comprising unclaimed dividends.
But let’s take a step back. What exactly is a dividend and how did this situation come about?
Companies issue shares to raise capital for growth. By investing or buying shares, you acquire a part in that company. As such, you can earn dividends only if you own shares in a company. Investing R1 000 to buy 100 shares at R10 each gives you a portion of the company and the potential to receive dividends when profits are distributed.
Sometimes, employers reward workers by giving them shares in the company—this is called an employee share scheme. It means you become a part-owner of the company you work for and may earn money through dividends.
Understanding unclaimed dividends
When a company makes a profit, it often pays a cash dividend from a portion of the profit to shareholders. When these payouts go unclaimed, they become unclaimed dividends. This often happens due to outdated banking records, address changes, deceased estates without designated beneficiaries or employees changing jobs without checking on their share schemes.
In South Africa, this has resulted in billions of rands going unclaimed, with many people completely unaware that there are unclaimed dividends waiting for them.
Here are some reasons why you may have unclaimed dividends:
- Changes in banking account details. Your FICA details may also be required/outstanding.
- Changes in contact details and the same as the above regarding FICA.
- Death of a family member who may have been a shareholder.
- Award of shareholding you may not be aware of, such as a BEE Scheme.
How to check if you have unclaimed dividends
Twenty listed companies, including Vodacom, Sasol Ltd, Mpact Ltd and African Media Entertainment Ltd, are collaborating with the Johannesburg Stock Exchange (JSE) to reunite lost shareholders with their unclaimed dividends. This collective effort is called the Claim It campaign.
The claiming process is straightforward.
1 Gather documentation such as your ID, contact details and proof of address. The JSE will then verify with the department of home affairs and various verification sources whether the details provided correlate with those of the shareholder.
2 Visit the Claim it campaign webpage on the JSE’s website and complete the digital form or contact the JSE’s Claim It call centre on 0861 401 105 and the team will provide guidance.
It’s never too late to claim what is rightfully yours. Find out today whether you might be eligible.
Further reading
JSE: Claim It
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