Hammerson Scrip

[AFJ]

Will IG automatically select the 2p Hammerson scrip for investors or will the investor need to take action to select the scrip rather than the cash?

[Tetragram]

I too would like to know the answer to this question from IG irect as I have seen on LSE bb a comment that they don't process scrip dividends.

[Chrisxyz]

Basically, IG.com do not pay the Hammerson enhanced scrip dividend. They are probably the only major share dealing company that so this. If you hold shares with Hammerson in a dealing account on IG on 1 April 2021 you will not receive the enhanced scrip dividend. Last time it meant receiving a cash dividend of 2p rather than shares valued at 20p, a huge difference.

These are comments from IG.com:
‘IG have never offered, nor claimed to offer scrip dividends. It would not therefore seem reasonable to expect such. Having reviewed your prior correspondence with IG, I see that you were clearly informed of this approach on 27 November. When such an election is made available to shareholders, it is IG’s policy to take the usual cash dividend and not pass on this election to its clients’.

‘Please note that IG’s treatment of scrip dividends has not changes since our response to you in January’. (January comment previous paragraph)

These are comments from Hammerson:
‘Shareholders electing to receive the Enhanced Scrip Dividend Alternative will be entitled to receive New Shares with a significantly greater value than the cash Final 2020 Dividend.’
‘I sympathise that some of the platforms have been less than helpful – I myself have been using IG so it is disappointing.  It is not a universal issue or a systemic issue, however, Hargreaves Lansdown, Halifax, and Rowan Dartington among others have elected to offer their clients the scrip.’

Here is a comment from AJ Bell on the November Scrip:
‘Given the demand for facilitating this SCRIP dividend for Hammerson, I can confirm that we are offering this as a one-off.’

It is worth adding that the mechanism for obtaining the enhanced scrip is basically completing a short template form and sending it to Hammerson. In addition, IG.com incorrectly deducted tax off my last cash dividend.
 

[Guest chrisxyz]

IG do not pay the scrip. You get 0.2p in cash not 2p in shares.

[Guest Bryan P]

I have asked IG this question, below is the response:-

Dear Bryan,

Thanks for your email.

Please note, we provide what the company does. That means the company usually pays the cash and hence we cannot provide scrip dividends.


If you have any further queries, please do not hesitate to contact us.

Regards,

 

[Jpn]

IG.com is pretty lazy in that regards. They do not want to make this extra effort to provide option to their client and offer dividend script. Pathetic platform. Shameful customer service.

[HeOfMuchDisgrunt]

Very strange, when you think that they handle rights issues properly (including on CFD and spread-bet accounts) yet those similarly involve the holder having to make an election whether or not to take up their shares.

[ArvinIG]

On 14/03/2021 at 00:41, AFJ said:

Will IG automatically select the 2p Hammerson scrip for investors or will the investor need to take action to select the scrip rather than the cash?

Hi All,

After confirmation from the relevant department. For Scrip dividends IG will pay cash dividends. 
IG does not take Scrip elections as it does not have the facility to record this election for Tax purposes.

All the best - Arvin