Dividends: Motivating Shareholders To ‘Go Digital’ At Every Stage Of The Dividend Journey

Using essential paper-based communications as the prompt to motivate a channel shift to digital

In 2024 Equiniti communicates a considerable amount of information on the dividend documents issued to shareholders. The drive to online, has been adopted for dividend information such as: bank mandates, address updates and dividend elections.

This is in place of the traditional paper forms that need to be detached, completed, signed, and posted to EQ. Due to this channel shift, the improvement to the Shareview registration journey has seen significant increase in website registrations and use.

A prompt to digitally check dividend tax allowance

Every year since 2022 the dividend tax allowance has been halved and from April 2024 it is now at £500, which will impact more shareholders who receive dividend payments. Whilst £500 is still a significant sum to receive in dividend payments, this latest reduction will likely bring in many more shareholders needing to complete a self-assessment tax return who may not have done so before.

Through our dividend stationery for payments in this current tax year, EQ will be alerting shareholders to the latest change and directing them towards the HMRC guidance on the gov.uk website - https://www.gov.uk/tax-on-dividends

EQ Boost is motivating shopping-savvy shareholders to go digital, to maximise their dividend’s spending potential

EQ Boost is a new payment channel and an alternative dividend option exclusively offered by Equiniti. Shareholders can elect to have their cash dividends paid to an EQ Boost account, allowing them to explore some great retail offers.

Users can then access their EQ Boost balance to select e-vouchers at some of the UK’s best-known brands with an uplifted value. The e-voucher purchased will always be greater than the original cash value, giving their dividend a Boost.

Using EQ Boost supports digitisation and there is proven growth of Shareview Portfolio and e-communications registration volumes for those that have launched EQ Boost to their shareholders and Corporate Sponsored Nominee participants.

EQ Boost has already been launched to over 200,000 shareholders including two FTSE100 companies one of which, M&S, have successfully paid their first dividend with EQ Boost as a dividend option, alongside the existing DRIP choice.

EQ Boost requires minimal effort from clients as the collateral and communications have been predefined and are ready to go; resulting in minimal to nil launch cost when mailed alongside existing mailings.

EQ’s drive towards chequeless dividends is seeing success

Thirty-nine of EQ corporate clients (22 FTSE100) are now fully chequeless, with more planning to make the transition.

From years of expertise, EQ provides a tried and tested approach to removing cheques. The key changes are communicated to all shareholders and required actions are detailed to all those directly affected (e.g., those currently receiving cheque payments).

All EFSL Corporate Sponsored Nominees are intended to be moved to a chequeless position alongside defaulting all communications to be digital.

Ongoing messaging, to drive digital channels, incrementally helps clients achieve both short and long-term goals

In sum, all the dedicated work to prompt, help and transform shareholder towards a digital experience is…paying dividends.

We’re putting both ambitious and realistic plans in place for organisations, dealing with PLCs at many varying stages of their digital journey, and supporting them in the essential progress towards the shift to digital communication preference. All the while considering the specific needs of the individuals.

EQ is here to support clients, in helping them to achieve the digital balance they feel is right for their organisation and shareholders. For now, and for the near future.