NG Scrip Dividend

10th Jun '10 by AJ51

3 comments 6125 reads

Can I opt for the optional scrip dividend in a nominee account (Halifax ISA) instead of my usual low cost DRIP and do you feel there are any significant advantages in doing so?

Many thanks,
AJ

RNS Number : 3278N
National Grid PLC
09 June 2010

?
9 June 2010

?National Grid plc ('the Company')

Scrip Dividend for 2009/10 final dividend

The optional scrip dividend, allowing shareholders to receive new fully paid
ordinary shares in the Company, is available to shareholders on the Register on
the dividend record date. New ordinary shares issued under the Rights Issue
announced on 20 May 2010, and in accordance with the Prospectus dated 25 May
2010, are not eligible for the 2009/10 final dividend. A timetable is provided
below.

The scrip dividend reference price for the 2009/10 final dividend, (being the
average closing mid-market price of an ordinary share for the 5 dealing days
commencing with, and including, the ex-dividend date) is 488.10 pence.

For American Depositary Receipt (ADR) holders, the ADR reference share price
(being the reference share price above translated for ADRs at the average US$
rate for 2nd - 8th June inclusive) is $35.9953.

Details of the scrip dividend are available on the National Grid website at
www.nationalgrid.com/investors.

2009/10 final dividend and timetable:

Dividend amount declared - 24.84 pence per ordinary share; $1.7737 per ADR.

Ordinary shares and ADRs trade ex-dividend - 2 June 2010

Record date - 4 June 2010

Last date for receipt of scrip elections - 21 July 2010

Dividend payment date - 18 August 2010

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marben100

10th Jun '10

Hi AJ,

I recommend that you contact Halifax to find out whether and how you can opt for the scrip dividend, if you prefer that to cash.

Whilst I am not familiar with your ISA the terms of account, NG will make no charge at all for issuing you with you with scrip instead of cash and I would not expect Halifax to make a charge either (please check!). Hence I would not expect there to be any deductions against a scrip dividend. Equally I am not familiar with the DRIP plan you refer to but there may be charges and stamp duty associated with that, if the plan provider receives cash and then uses that cash to purchase shares. AIUI the difference is that NG is issuing new shares under the scrip election whereas a third-party DRIP provider (like Halifax) is purchasing shares in the market, with associated costs/spread.

It is important that you read the terms of the scrip dividend scheme, which you can find here: http://www.nationalgrid.com/corporate/Investor+Relations/ShareholderServices/DividendPayments/OrdinarySharesDividendPayments.htm

You should compare those against the terms of the DRIP scheme to decide which is better for you.

DISCLAIMER: I am not authorised to give investment advice and you must check the information for yourself.

HTH,

Mark

Another point I observe is that the "reference price" which is used to determine the number of shares you receive if you elect for scrip is 488.1p - against a current SP of 499.4p. I would expect a DRIP to use whatever SP prevails on the day that your dividend is re-invested to determine the number of shares you receive. Obviously it is impossible to know in advance whether it will be higher (disadvantageous to you) or lower (advantageous) than the reference price and hence whether you will receive fewer or more shares under the scrip scheme.

AJ51

14th Jun '10

Halifax will not allow me to have a Scrip Dividend, however with the share price over £5, I am probably better off using the DRIP facility available.This is 1% commision, so with stamp duty I would pay about 7p per share.

Thanks for the advice Mark.
AJ

NG Scrip Dividend

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AJ51

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