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Quick question for those with more knowledge than me.

I picked up some Telefonica shares last October in my sipp but didnt get a cash dividend which was declared in December. I suspect I was paid in shares, as its an ADR? and my holding seems to have increased. However, I didn’t get the choice of cash or shares like I did with my Repsol holding, is this because of the class I’m holding? Also, there is nothing obvious on HL that tells me that my holding increased other than me comparing the number of shares held now with the number bought in October. It’s this one on HL:

Telefonica SA (TEF) ADR Each Repr 1 Ord Eur1

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I got cash, after responding to a investor question.  Note, I sold my TEF as the Spanish gvt brought in a new tax which further hits you if you hold TEF.  In effect, if TEF does the same as US or Australia company in all respects, I get less from TEF due to the Spanish withholding tax.......

not fin advice, etc etc etc etc

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On 13/02/2021 at 09:10, George Dawes said:

Quick question for those with more knowledge than me.

I picked up some Telefonica shares last October in my sipp but didnt get a cash dividend which was declared in December. I suspect I was paid in shares, as its an ADR? and my holding seems to have increased. However, I didn’t get the choice of cash or shares like I did with my Repsol holding, is this because of the class I’m holding? Also, there is nothing obvious on HL that tells me that my holding increased other than me comparing the number of shares held now with the number bought in October. It’s this one on HL:

Telefonica SA (TEF) ADR Each Repr 1 Ord Eur1

That used to be my job - making payments on things like ADRs (american depositary receipts) from the custodian side. Probably a world away from how things happen today but they can sit on the main account for a while depending on how good the clerk is at there job. When I worked at Merrill Lynch I took over the accounts of someone who hadn't reconciled the accounts or made payments in 2-3 years. What she would do is bundle all the money into one lump and move it off her accounts the day before a management meeting so it wouldn't show up on her exception report and move it back the next day. She had accrued $4million in unpaid dividends and I only noticed as I ran an accrual at the end of every day to find she'd lumped it all in one of my other accounts. I took responsibility for them and had a nightmare few months unraveling the mess on microfiche 🤣🤣 she was shit.

Edit: she only paid out if a client asked where their money was 🙄

Edited by longtomsilver
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11 hours ago, wherebee said:

I got cash, after responding to a investor question.  Note, I sold my TEF as the Spanish gvt brought in a new tax which further hits you if you hold TEF.  In effect, if TEF does the same as US or Australia company in all respects, I get less from TEF due to the Spanish withholding tax.......

not fin advice, etc etc etc etc

If there’s a double taxation treaty you should only pay the higher of dividend taxation in Australia or Spain. 

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9 hours ago, Castlevania said:

If there’s a double taxation treaty you should only pay the higher of dividend taxation in Australia or Spain. 

true, but that adds a layer of hassle which other shares don't give me.  And if I have the investment in a SMSF in Australia, tax free, I am just losing out...

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Anyone care to give me a bit of advice on TEF? What is the difference between these two? Any one a cheerleader for TEF? Why? 
 

I am looking to get more telecommunication exposure. Any other favoured companies in this sector. Obviously I will do my own research etc. 
 

 

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Edited by Vendetta
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3 minutes ago, Castlevania said:

Not much. Top one is an ADR (American Depository Receipt), bottom is a CDI. Both are essentially the same thing: a certificate representing an underlying share in a foreign listed company. ADR’s are traded in the US. CDI’s in the UK.

@Castlevania

Really appreciate you going to the effort of replying. 

Are there any different tax implications for going with one or the other...

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  • 2 weeks later...

Id add on here you should take TEF shares in stock and then sell the extra stock if you want the cash from the divi as that avoids Spanish withholding tax.TEF can only do this while they have spare treasury shares though,Repsol are the same and i think their treasury shares are low,so likely it wont work on the next divi or the one after.

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