ASX Dividend Cheques

[lissica]

Just wondering if they tend to convert to NZ$ when posted to NZ shareholders?

I remember getting one from WBC (Westpac) which I had an an ASX holding last year- the cheque arrived in NZD, much to my annoyance.

I'm expecting them in late July/August (CFE divvy and AOE takeover) but won't have a direct debit facility because the Macquarie CMT is closing at the end of the month. Will give the share registries a ring on Monday but just thought I'd see if people are expecting NZD or AUD cheques to arrive?

Also, how long do you have to cash a cheque before it's invalid? I'm not going to be in the country for three months...

And lastly, are they safe? I have 65k arriving in cheques. What if they get lost in the mail?

Cheers,

Lissica

p/s I can't believe people still use cheques in 2010 ^_^

[OldRider]

I don't think there is a hard and fast policy, for the most part cheques are sent in the currency relating to the country in which a shareholding is registered.
I expect CFE for example will be sending cheques in A$, if i recall correctly they don't seem to offer direct crediting, thankfully there are not many companies like this,
if an $A account is held with ASB Securities you may bank cheques directly to this.

The dividend from TAL, registered on ASX was made by a direct payment to my NZ bank account recently just to be different

For the first time ever, a dividend cheque did not arrive recently, presumably missing in the mail, after 2 or 3 weeks I emailed the registry and a
new cheque arrived in a day or so, I wouldn't think security would be a problem.

I suggest you check your profile at the registry company - most offer some sort
of online ability to change banking instructions addresses etc, sometimes directly,
sometimes the form is provided to send back a hard copy.

If your are handling the value of cheques you mentioned perhaps you should organise
an Australian bank account, I find it worthwhile and the Bpay ability a real timesaver

[percy]

Expect AU cheque.
Usually cheqes go stale after 6 months,however dividend cheques seem to have a much longer life.Not sure but maybe even up to a number of years.
Cheques are safe.If lost in mail registry will cancel and issue a replacement.Do not know if they charge a fee.
NZ banks take about 1 month to clear AU cheques.
PROBLEM>I had a problem with Westpac not wanting to process a AU$5,500 cheque.So check with your bank.I solved the problem with my broker Craigs depositing the cheque in an AU cash management account I did not realise I had with them .I now deposit all AU cheques with Craigs and have clear funds within a matter of days.It may pay you to look at openning an account with Craigs or First capital NZ to get around any bank problems.
I note Alice from Direct Broking gives good advice in another thread.I think the thread is Forum back office or something like that.

[Lizard]

BHP do NZ dollars. I think NUF used to do it too. There are probably a few others (perhaps those with a secondary listing in NZ?).

Forex spreads at my bank seem to have doubled since I opened my account in 2003. Plus they now charge a $5 fee each time (not each cheque though). So most of mine I send to FNZC and they put in Aussie cash management for me for a small fee.

Have had difficulty with some cheques for an estate trust - since they are always registered under the trustee, the cheques sometimes arrive in the trustee name only so the bank refuses to put them to the trust account and have to bank into the trustees personal account first, then transfer. Frustrating, given the rules are supposed to stop money going to the wrong person (not force it to!).

[POSSUM THE CAT]

Lissica if the Aust. companies use computershare as share registry it is possible to have Aust dividends converted to NZ dollars & direct credited to NZ bank account

[lissica]

I suggest you check your profile at the registry company - most offer some sort
of online ability to change banking instructions addresses etc, sometimes directly,
sometimes the form is provided to send back a hard copy.

If your are handling the value of cheques you mentioned perhaps you should organise
an Australian bank account, I find it worthwhile and the Bpay ability a real timesaver

Thanks Oldrider- I already logged onto the registry- nope, they won't let me change it online so I'll have to request forms soon.

I had the BPay facility with Direct Broking which used a Macquarie Cash Management trust account for this, but they close down from 31 July, just when I'm expecting a couple of divvys to arrive. Hopefully they can add this feature to their new multi-currency account.

[lissica]

Thanks Possum,. but I don't want that >.<

I'm with Direct Broking and I had to open an multi-currency account due to the closure of their Macquarie Acc, so an AU$ cheque could probably be deposited in there. But because the new multi-currency account is not resident in Australia, they don't allow direct crediting yet.

Is there an option of requesting cheques be denominated in a certain currency or is it decided for you?

Of the two payments I'm expecting in the next month, one is with Computershare and the other with Link. Both websites don't let you do very much when you log in.

I guess if there is no choice I'll take whatever comes

[lissica]

BHP do NZ dollars. I think NUF used to do it too. There are probably a few others (perhaps those with a secondary listing in NZ?).


Sorry for all the questions, but as an aside, has anyone with dual listed shares ever gotten NZ imputation credits attached to their dividend when they hold it on the ASX?

I hold ANZ and WBC both on the ASX, and I've only ever gotten Australian franking credits I can't use. Does anyone hold them on the NZX and if so, do you get NZ imputation credits attached (given that these companies pay taxes in NZ too)?

[lissica]

I note Alice from Direct Broking gives good advice in another thread.I think the thread is Forum back office or something like that.


Thanks Percy,

Yeah Alice has been very helpful, but that still leaves me with two large divvy cheques I'm trying to figure what to do with when they arrive.

Although I guess there could be better things to worry about.

Lissi

[JBmurc]

Thanks Percy,

Yeah Alice has been very helpful, but that still leaves me with two large divvy cheques I'm trying to figure what to do with when they arrive.

Although I guess there could be better things to worry about.

Lissi

One thing you should find out is whoever you use to if you choose to convert aud/nzd is their interbank rates an charges they will charges esp if it's a good size chq is worth considering
I'll also be receiving a good sized 20k+ NZD divie my plan is to use my ASB AUD treasury account I got setup recently(should have done a long time ago) their interbank rate charge is very good under 1%(think it was .7%) if I just deposited into my NZD ASB account the interbank would be much worst a cost me hundreds more..
NZforex is another great place to convert your chq (also have an account who-ever offers the most NZD gets the AUD chq)

just try out this currency converter(On 20k AUD the diff between a good 1% to a 3% $500NZD)
-http://www.oanda.com/currency/converter/

[macduffy]

Sorry for all the questions, but as an aside, has anyone with dual listed shares ever gotten NZ imputation credits attached to their dividend when they hold it on the ASX?

I hold ANZ and WBC both on the ASX, and I've only ever gotten Australian franking credits I can't use. Does anyone hold them on the NZX and if so, do you get NZ imputation credits attached (given that these companies pay taxes in NZ too)?

Hi lissica

I held PPP on the Aust register at the time they paid their divvy a year or two back. That was paid with NZ imputation credits. NAB has occasionally paid them too in the past but not last year.

There's a separate thread somewhere in which this wider subject has been discussed relatively recently. My own view is that Australian companies pay NZ imputation credits only where they have a significant NZ shareholder base and pay a relatively large amount of NZ tax. In most cases, eg ANZ, they seem to take the view that it's disadvantageous to the company to order their affairs in such a way that NZ imp credits can be paid.

Depending on the company, shareholder agitation may help! It was probably not just coincidental that PPP had large NZ-based directors' shareholdings!

[lissica]

Hi lissica

Depending on the company, shareholder agitation may help! It was probably not just coincidental that PPP had large NZ-based directors' shareholdings!

Have to agree. Esp my ANZ holdings, given they are NZ's largest bank.