Shares or Dividend


T

Tricia

Hi When the Halifax was taken over by BOS I, like most mortgage holders
received 200 shares. I now have 209 as I elected to receive shares instead
of a dividend. In their latest bumf there is a form to go back to receiving
a dividend or continue to receive shares. As our mortgage will be paid off
in approx 7 years when our endownments mature and we will most likely have
to sell the shares to make up the shortage, should I elect to receive a
dividend, or continue to receive shares. In other words what is considered
the best option, shares or cash. These are the only shares that I and my
partner have.

Although I may have some Asda shares in a years time if I join their share
scheme. I missed out on this years joining by 3 weeks as I just started
working for them at the end of Oct and the date was 8th Oct.

Thanks Tricia
 
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T

Tumbleweed

Tricia said:
Hi When the Halifax was taken over by BOS I, like most mortgage holders
received 200 shares. I now have 209 as I elected to receive shares instead
of a dividend. In their latest bumf there is a form to go back to
receiving a dividend or continue to receive shares. As our mortgage will
be paid off in approx 7 years when our endownments mature and we will most
likely have to sell the shares to make up the shortage, should I elect to
receive a dividend, or continue to receive shares. In other words what is
considered the best option, shares or cash. These are the only shares that
I and my partner have.

Anyone who knows that for sure is sitting on their own private tropical
island and not reading this newsgroup. In the great scheme of things though,
its small beer, isnt it? Shares are £16 each or so? so they might give you
(say) 10 shares or perhaps £`150 or something around that, a year? Thats
isnt going to make a major impact on most mortgages is it?Probably better to
take the shares , on the grounds that £150/year will dissappear anyway,
whereas after 7 years at least you'd havea grand or so......well it would
dissappear if you gave it to me (feel free to:).
 
T

Terry Harper

Hi When the Halifax was taken over by BOS I, like most mortgage holders
received 200 shares. I now have 209 as I elected to receive shares instead
of a dividend. In their latest bumf there is a form to go back to receiving
a dividend or continue to receive shares. As our mortgage will be paid off
in approx 7 years when our endownments mature and we will most likely have
to sell the shares to make up the shortage, should I elect to receive a
dividend, or continue to receive shares. In other words what is considered
the best option, shares or cash. These are the only shares that I and my
partner have.

Although I may have some Asda shares in a years time if I join their share
scheme. I missed out on this years joining by 3 weeks as I just started
working for them at the end of Oct and the date was 8th Oct.
Tricia, your best plan is to take the dividends as shares, as the
dealing costs are minimal and you get the benefit of compounding.

With current dividends of 10.8p interim and 22.15p final, your yield
is about 4% tax paid for a standard rate payer, at the current price
of 815p..

Presumably you were a BoS mortgagor, and not a beneficiary of the
Halifax demutualisation.

Over 7 years it is probable that both share price and dividends will
have risen to some extent. Your compounding will be enhanced by both
events. You may not have a shortfall on your endowment by then,
depending on the life company involved and its investment policy.
 
T

Tricia

Presumably you were a BoS mortgagor, and not a beneficiary of the
Halifax demutualisation.
I was and still am a Halifax mortgagor and got 200 shares because of it. Now
I have 209 So as I asked before what is considered the best deal? A
dividend or shares? If I go for a dividend, in 7 years I will still have 209
shares. Or if I take the share option I might have 220 shares in 7 years, or
not! As was stated, 209 shares is not a lot in the great scheme of life Nor
is 220. That is the dillema, take the money or the shares? According to
moneyextra they are worth £1703.35. What were they worth when I got them?
What will they be worth when my partner retires in 7 years. Do you know how
many shares I will get this year? So many variables for 209 shares.
I think I will keep getting the shares as what will I get in dividends? £77
approx this year which will just be frittered away on another hard drive and
memory for my computer
Thanks Tricia
 
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T

Terry Harper

I was and still am a Halifax mortgagor and got 200 shares because of it. Now
I have 209 So as I asked before what is considered the best deal? A
dividend or shares? If I go for a dividend, in 7 years I will still have 209
shares. Or if I take the share option I might have 220 shares in 7 years, or
not! As was stated, 209 shares is not a lot in the great scheme of life Nor
is 220. That is the dillema, take the money or the shares? According to
moneyextra they are worth £1703.35. What were they worth when I got them?
What will they be worth when my partner retires in 7 years. Do you know how
many shares I will get this year? So many variables for 209 shares.
I think I will keep getting the shares as what will I get in dividends? £77
approx this year which will just be frittered away on another hard drive and
memory for my computer
Tricia, you must have had some cash back when they did a share
consolidation, back in 1999. You should have got a new share
certificate, unless you held your shares in a Halifax account.

What has probably happened is that you worked your way up to some
figure, maybe 220 shares, then dropped 50 due to the restructuring,
and have since worked your way back up to 209.

The shares cost you ZERO in the eyes of the Inland Revenue. Somewhere
you have about £130 from that capital reorganisation. You could always
reinvest that in HBOS shares.
 

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