Megathread - 🔥 Dividend Fest 🔥

ISA and SIPP dividends are not subject to tax with no limit.

1 Like

Hi, yes year ending 5 April 2024 the allowance is £1000. Year ending 5 April the allowance is £500.
Anything over that allowance is subject to tax depending on your tax rate.
Basic rate tax payer it’s 8.75%
Upper rate tax payer it’s 33.75%
Additional rate payer it’s 39.35%

1 Like

but with a few caveats…
only UK share dividends
US stock dividends will be subject to WHT even in an ISA (make sure your w8ben is in place for 15% not 30% WHT) SIPPs should go to 0% WHT with the sipp w8ben (but FreeTrade cant facilitate this for some reason)
Euro stocks will also be subject so some for of WHT but i dont hold any

Best to hold non UK stocks in a SIPP (not FT SIPP) for 0% or hold in a GIA as you can offset the WHT paid on your SelfAssessment

[reference - Foreign Dividends – Avoid getting taxed twice!]

1 Like

Can you offset the WHT in a SIPP on self assessment?

I didn’t know about the special treatment of US dividends paid to a UK pension account, thanks. This is actually useful.

ISA Dividends for March:

image

[Context - Portfolio size around £68k, been investing since 2015]

Share prices have gone up a little, but unlike my growth investments which have seen a significant rise, this is my dividend income portfolio, where I’m not too concerned about the share price.

Progression over the years:

image

I’ll be offloading one investment this month, one of my UK equity and income trusts (TMPL) only because I’m heavy in this sector and want to diversify a bit more. I will add the proceeds of that sale to existing stocks.

Hope you all had a good dividend month! :smiley:

14 Likes

Legend!

2 Likes

It might get even better yet - I’m still waiting for loads from last month. DEC, BP, SOHO all still to be received.

1 Like

@acamp just checking there isn’t a known issue with certain dividends?

Received Barclays (due 3rd April), but waiting on VWRL (27th March), BP (28th March), and BHP (28th March). 9 and 8 days ago, respectively, so seems like a very long wait compared to normal (even with a bank holiday).

2 Likes

It also seems the recently released Woodside Energy Group divided is wrong as a 30% withholding tax has been deducted which has not happened previously.

2 Likes

Thanks @weenie for the inspirational and aspirational dividend updates! Because of you I’ve been rejigging my portfolio and, during a period of bovine insomnia overnight, I tried this iOS app.

It seems to be absolutely brilliant so far so I thought I’d share it in case anyone else finds it handy.

5 Likes

Hey thanks for the nudge. There was an issue towards the end of last week where a batch of dividends did not automatically distribute. The team is aware of this and working to get this all wrapped up ASAP.

2 Likes

Thanks for the quick reply and for explaining :grinning::+1:

Impressive shows what can happen with regular investing / compounding over time.

I’m only 2.5 yrs into this journey. I hope to hit similar numbers by yr 4 with a longer term goal of achieving escape velocity: enough passive income to pull away from the gravitational suck of the system and the mediocrity it imposes on all of us.

Keep stacking

8 Likes

Amen to that.

1 Like

Similar here.
Unfortunately life stuff and cost of living has meant I can’t top up as much or as regularly as some of you. But it’s still growing slowly. I just got the last of my expected dividends for last financial year and it’s a total of £205 and some pennies, which means I beat my target of £200.
Context- portfolio is just over £3,000, topping up £10 - £20 here and there.

Out of interest, I’ve always done any finance records or plans based on the financial year April to March. Do you all do that?
If you do, why? And if you don’t, why?

For me it makes sense to tie in with the tax year and ISA year too.

6 Likes

While I’m accumulating, I’ve always measured from calendar year, ie Jan to Dec.

Might switch to tax year when I retire as I’ll be trying to keep within tax allowances etc with my income.

1 Like

Here is a noob question about dividend yield:

  • does it include the specials paid throughout the year, if any?

I have in mind BDCs like MAIN and FSK.

No. Forward yield is the estimated annualised yield based on the last monthly/quarterly payout. Specials would be extra.

2 Likes

Thanks!