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To provide the quickest response possible, we have prepared answers to the most common queries we receive about dividends. If you cannot find the information you need below then please continue to the e-mail form. Comprehensive information can also be found in Dividends and in Investor FAQs.
Definition of 'dividends'
Dividends are payments that Vodafone pays to you as a shareholder. They are paid twice yearly usually in February and August (see Dividend History). A dividend is paid for each share, so the amount you receive depends on the number of shares you own. To receive the dividend, your name must be on the share register on the ex-dividend date which is usually two days before the record date. If the shares are sold before the ex-dividend date or purchased after it, you will not be entitled to that dividend.
Definition of 'ex-dividend'
Before announcing each dividend, and in consultation with the London Stock Exchange, we set a date on which shares will be sold without entitlement to the dividend - known as going 'ex-dividend'. Before that date they are said to be 'cum-dividend', i.e. they have entitlement to the dividend.
Anyone who buys a share before the ex-dividend date is therefore entitled to receive the dividend recently announced. If you purchase on or after that date the dividend most recently announced is payable not to you but to the previous owner.
The dividend is paid to shareholders on the number of shares held at the record date. The record date is usually two days after the ex-dividend date. If you receive a dividend having recently sold your shares and are unsure whether you are entitled to it, contact the agent who acted on your behalf in the sale. Depending on the terms of the sale, the dividend may be due to the new owner.
Payment details
You can have your dividends paid directly into your UK bank or building society account. This will save you paying in any dividend cheque and will also ensure that you get access to the money on the payment date of the dividend. Your tax voucher will be posted to you at the time of payment. If you would like your dividend paid into your bank or building society account you will need to complete a mandate form which can be obtained from our Registrars. Vodafone's Registrars are Computershare Services PLC.
Computershare Investor Services PLC
P. O. Box 82
The Pavilions
Bridgwater Road
Bristol
BS99 7NH
England
Tel: +44 (0) 870 702 0198
http://www.computershare.com
Alternatively, you can receive the dividend cheque through the post.
Whether you choose to have your dividend paid into your bank or building society account or paid to your directly by cheque, when a dividend is paid, you will receive a tax voucher at the time of the payment. This provides details about the payment and how the amount you have been paid has been calculated.
Payment currency
ADR holders are paid in US dollars, ordinary shareholders are paid in either pounds sterling or euros (ordinary shareholders in the eurozone will receive dividend payments in euros, unless they choose to opt out).
Tax
When a dividend is paid, you will receive a tax voucher showing the net amount of dividend received and the tax deemed to have been paid (the 'tax credit'). The total of these two amounts is usually called the 'gross dividend'. As at 11 June 2003 the tax credit on dividends is currently 10% of the gross dividend.
Dividends received on your shareholding are treated as though they had been paid after deduction of income tax at the lower rate. Generally, if you are UK resident shareholder and you:
- Pay tax at the lower or basic rate - you have no further tax to pay;
- Pay tax at a higher rate - you will be taxed at a special rate of 32.5% of the gross dividend. You will have to pay the extra 22.5% (over the 10% tax credit) when you settle your overall tax bill for the year;
- Do not pay tax - you will be unable to reclaim the tax credit (unless shares are held within a Personal Equity Plan or Individual Savings Account or by a charity).
For the purposes of self-assessment, the UK Inland Revenue requires that you retain tax vouchers for six years.
Dividend Reinvestment Plan (DRIP)
The Company offers a Dividend Reinvestment Plan which allows holders of ordinary shares who choose to participate to use their cash dividends to acquire additional shares in the Company that are purchased on their behalf by the Plan Administrator through a low cost dealing arrangement. Further details can be obtained from the Plan Administrator on +44 (0) 870 702 0198.
For ADS holders, The Bank of New York maintains a Global BuyDIRECT Plan for the Company, which is a direct purchase and sale plan for depositary receipts, with a dividend reinvestment facility. For additional information, please contact:
The Bank of New York Shareholder Relations Department
Global BuyDIRECT
P.O. Box 1958
Newark
New Jersey
07101-1958
USA
Calling from inside the US: +1 (800) 233 5601 (toll-free)
Calling from outside the US: +1 (610) 312 5315 (not toll-free)
http://www.globalbuydirect.com
Lost dividend cheques or dividend tax vouchers
If you lose your dividend cheque you should contact our Registrars as soon as possible, confirming which payment has been lost. They will then arrange for the cheque to be stopped and issue you with a duplicate. There is no fee for this service.
If you require a replacement dividend tax voucher, please inform our Registrars, who will arrange for a duplicate to be sent to you. There is a fee for this service.
Vodafone's Registrars are Computershare Services PLC.
Computershare Investor Services PLC
P. O. Box 82
The Pavilions
Bridgwater Road
Bristol
BS99 7NH
England
Tel: +44 (0) 870 702 0198
http://www.computershare.com