South Africa is sitting on a staggering R4.5 billion in unclaimed dividends, with thousands of shareholders unaware they are entitled to a payout.
The Johannesburg Stock Exchange (JSE), in collaboration with listed companies, has launched the “Claim It” campaign to help investors track down their missing funds.
If you or someone you know has ever owned shares in a JSE-listed company, you could be among those with money waiting to be claimed. Here’s everything you need to know about the situation, why these funds remain unclaimed, and how you can check if you are owed a dividend.
Why Are Dividends Left Unclaimed?
Unclaimed dividends accumulate for several reasons, including:
The JSE’s ‘Claim It’ Initiative
To address the growing issue of unclaimed dividends, the JSE has rolled out the ‘Claim It’ campaign. This initiative enables investors to check whether they have funds waiting for them by visiting the JSE’s official website. The process involves:
How to Check If You Are Owed Money
To find out if you have unclaimed dividends:
The Role of Dividends Tax
It’s important to note that dividends in South Africa are subject to a 20% tax deduction before they are paid to investors. If you are claiming unclaimed dividends, ensure that you account for any tax implications.
The South African Revenue Service (SARS) provides detailed guidance on how dividend tax works, and it’s advisable to consult with a tax professional if you need assistance.
Why This Matters for Investors
Unclaimed dividends represent missed financial opportunities for investors, some of whom may not even be aware of their entitlements.
For businesses, unclaimed dividends can create additional administrative burdens and result in large amounts of capital sitting idle. By raising awareness through initiatives like ‘Claim It,’ the JSE is ensuring that rightful investors can access what is legally theirs.
If you have ever invested in a JSE-listed company, now is the time to check whether you are entitled to a portion of the R4.5 billion in unclaimed dividends.
With the JSE making it easier than ever to track and claim funds, there is no reason to leave money on the table. Act now and ensure that you receive any outstanding dividends that rightfully belong to you.
For more updates on financial and investment opportunities in South Africa, keep following our blog.
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