MasterCard dividend withheld


What does this mean? Does anyone know why the dividend was withheld?

I think it might mean that the fraction of the share that you hold is small enough that your dividend rounded to 0

That is what I thought it might have been. Based on what I currently own, I should’ve received something, but I think I had a very low amount on the ex div date, so must have been less than 1 pence.

@Motiv7 The dividend is indeed 0.00 because the fractional shares that you’re holding don’t amount to a dividend of 0.01.
As for the “You have been charged” part, it’s a technical error & we’ll correct it.

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This is partly what puts me off investing in fractional dividend shares, as it might mean not receiving dividend amounts properly. Incentive to buy the full share I guess

The maximum you can lose per dividend payout due to rounding is 0.01. Suppose that happens 4 times a year and you own 40 stocks with fractional parts. You have lost £1.60.

Surely it should roll over until it reaches a full penny and then get added to your account?

My previous post was to make a joke. If pennies make a different to my financial health, probably I should not be investing in the stock market. I am thankful to not be with other brokers, who typically take 0.5% - 1.5% fee to convert USD dividends to GBP.

Technically, a UK taxpayer probably owes dividend tax on those unreceived dividends of value 0.005, seeing as broker charges for distribution and fx are not allowable expenses against dividend tax. Good thing is, HMRC allows rounding to nearest £1 in whichever direction is advantageous to the taxpayer.

You also have to understand how rounding works in theory. Half of the time it gets rounded up and half of the time it gets rounded down, meaning that over the long term you shouldn’t be far wrong

I suspect that in regard to dividend payments on fractional shares Trading 212 always rounds down when the amount is less than 0.01. 0.007 becomes 0, not 0.01.

But maybe not! Recently on Mastercard I got

shares x dividend x GBP/USD

= 0.0632528 × 0.4 × 0.7663 = 0.01938

and I got 0.02, so there was rounding up.

Afaik, there was official post somewhere(cba to look) , that basically states. Behind scene there is exact figures of your account balance (more decimals then visual .00 GBP), so in short you dont lose anything, as once it adds up to round up, it rounds up etc, so think of it more as visual nuisance, in background you don’t lose zilch.

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I remember that too. But I don’t know if it applies to accounting for dividends, or just purchases and sales. Perhaps one the staff can let us know.

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Here is the discussion mentioning the fact that client money is ledgered to 4 or 5 decimal places, for those who are interested.