Henderson Diversified (HDIV) announce dividend

[monabri]

https://www.londonstockexchange.com/exc ... 52925.html

"Henderson Diversified Income Trust plc (the "Company") declares a fourth interim dividend of 1.10p per ordinary share, in respect of the period ending 30 April 2020, payable on 30 June 2020 to shareholders registered at the close of business on 5 June 2020. The Company's shares will go ex-dividend on 4 June 2020"

[monabri]

https://www.investegate.co.uk/henderson ... 54396448T/

"Henderson Diversified Income Trust plc (the "Company") has declared a second interim dividend of 1.10p per ordinary share, in respect of the year ending 30 April 2022, payable on 30 December 2021 to shareholders registered at the close of business on 3 December 2021. The Company's shares will go ex-dividend on 2 December 2021. This dividend is to be paid as an interest distribution for UK tax purposes from the Company's revenue account."

[monabri]

https://www.investegate.co.uk/henderson ... 25352304W/

Minor date correction - pay day is 31st Dec, not 30th.

"The issuer advises that the following replaces the second interim dividend announcement released on 25 November 2021 at 15:54 under RNS number 6448T. The second interim dividend is payable on 31 December 2021 (as opposed to 30 December 2021). All other information remains the same."


Can't get the staff or train thedm to check a calendar!

[monabri]

https://www.investegate.co.uk/henderson ... 11255900Q/

"Henderson Diversified Income Trust plc (the "Company") has declared a third interim dividend of 1.10p per ordinary share, in respect of the year ending 30 April 2023, payable on 31 March 2023 to shareholders registered at the close of business on 3 March 2023. The Company's shares will go ex-dividend on 2 March 2023. This dividend is to be paid as an interest distribution for UK tax purposes from the Company's revenue account."

Good..it's being paid from interest and not capital.

[Alaric]

This dividend is to be paid as an interest distribution for UK tax purposes from the Company's revenue account."

Good..it's being paid from interest and not capital.

What it means is that it counts against the £ 1000 interest allowance rather than the £ 2000 dividend allowance.

[LostInSpace]

This dividend is to be paid as an interest distribution for UK tax purposes from the Company's revenue account."

Good..it's being paid from interest and not capital.

What it means is that it counts against the £ 1000 interest allowance rather than the £ 2000 dividend allowance.

....... Or that it gets taxed at 20% rather than 8.75% if you are over these limits.

Why ?

[88V8]

This dividend is to be paid as an interest distribution for UK tax purposes from the Company's revenue account."
Good..it's being paid from interest and not capital.

What it means is that it counts against the £ 1000 interest allowance rather than the £ 2000 dividend allowance.

....... Or that it gets taxed at 20% rather than 8.75% if you are over these limits.
Why ?

Because dividends are currently taxed at a lower rate than interest.
The £1,000 allowance btw, only applies to basic rate taxpayers. Higher rate = £500, and additional rate = Nil.

V8

[LostInSpace]

This dividend is to be paid as an interest distribution for UK tax purposes from the Company's revenue account."
Good..it's being paid from interest and not capital.

What it means is that it counts against the £ 1000 interest allowance rather than the £ 2000 dividend allowance.

....... Or that it gets taxed at 20% rather than 8.75% if you are over these limits.
Why ?

Because dividends are currently taxed at a lower rate than interest.
The £1,000 allowance btw, only applies to basic rate taxpayers. Higher rate = £500, and additional rate = Nil.

V8

That answers the "why" I wasn't asking (I'm fully aware of the UK personal tax code) - The question I was trying to ask was why payout cash as income rather than as a dividend ? It can't benefit many people

[Newroad]

Hi LostInSpace.

I have some vague recollection that someone told me it may relate to domicile. Compare HDIV (UK) to BIPS (Jersey). In Jersey, I believe Income Tax is 20% but other taxes (Capital Gains, Withholding, Dividends etc) are 0%. Not so in the UK.

Assuming I recollect accurately, this may partly/wholly explain relative preferences to distribute as dividends vs income/interest - BIPS more inclined to pay as dividends, HDIV as income.

Regards, Newroad

[monabri]

To clarify, I meant the dividend is from income Henderson have garnered for distribution rather than them having to sell assets that have made a capital gain.

[scotia]

That answers the "why" I wasn't asking (I'm fully aware of the UK personal tax code) - The question I was trying to ask was why payout cash as income rather than as a dividend ? It can't benefit many people

Looking at the KID, it says "The Company invests in a diversified portfolio of global fixed income and floating rate asset classes." Thus its returns appear to be income. In the past I had some unsheltered (from tax) fund investments, and the Bond fund returns were taxed as interest. I suspect this is the same.
In their half year report to 31st October 2022, the 5 year total return of HDIV was -12%, although in the past few months it has improved substantially, and its 5 year total return is now +5.1%. So much for the stability of its diversified portfolio

[Alaric]

Looking at the KID, it says "The Company invests in a diversified portfolio of global fixed income and floating rate asset classes." Thus its returns appear to be income. In the past I had some unsheltered (from tax) fund investments, and the Bond fund returns were taxed as interest. I suspect this is the same.

There's likely some tax rule which says that when an IT invests in bonds and deposits, the distributions have to take the form of interest income.

[mc2fool]

Looking at the KID, it says "The Company invests in a diversified portfolio of global fixed income and floating rate asset classes." Thus its returns appear to be income. In the past I had some unsheltered (from tax) fund investments, and the Bond fund returns were taxed as interest. I suspect this is the same.

There's likely some tax rule which says that when an IT invests in bonds and deposits, the distributions have to take the form of interest income.

"If your fund is more than 60% invested in fixed interest and cash at any point during its accounting year then its distributions count as interest payments – not as dividends." https://monevator.com/bonds-and-bond-funds-taxed/

[Gan020]

"If your fund is more than 60% invested in fixed interest and cash at any point during its accounting year then its distributions count as interest payments – not as dividends." https://monevator.com/bonds-and-bond-funds-taxed/

There must be some workaround though because BIPS and AXI in the same sector which are 99% invested in fixed interest and cash pay out dividends. So is NCYF which is about 80% fixed interest

[mc2fool]

"If your fund is more than 60% invested in fixed interest and cash at any point during its accounting year then its distributions count as interest payments – not as dividends." https://monevator.com/bonds-and-bond-funds-taxed/

There must be some workaround though because BIPS and AXI in the same sector which are 99% invested in fixed interest and cash pay out dividends. So is NCYF which is about 80% fixed interest

Domicile? All those are in the Channel Islands whereas HDIV is UK domiciled. I note that the Monevator article talks about "funds" and ETFs but not ITs, so it may or may not be relevant for HDIV...