Dividend: Methods of Payment
The dividend is automatically paid in euros, with no need for any action on the part of the shareholder. On the day of payment, the dividend is paid directly to shareholders who are directly registered. For bearer shareholders and indirectly registered shareholders, ENGIE pays the dividend to the financial institutions that are managing their stock.
The date for payment into the shareholder’s bank account may vary depending on the number of value days that may be applied by the shareholder’s financial institution.
Note: current social charges are now deducted by the banks when the dividend is paid.
Harmonization of European Practices
Harmonizing the European practices involves making changes to the market rules, particularly as regards dividend payments. So there are two important dates:
- the payment date on which the dividend is paid,
- the ex-dividend date, as of which the coupon is clipped and the price is reduced by the amount of the dividend. It is also called “ex date”. Shares bought as of this date do not qualify for the dividend.