R4.5 billion still owed to South Africans and you might be one
Are you one of the lucky South Africans who can claim their share of R4.5 billion?
South Africans have once again been warned about the staggering R4.5 billion in unclaimed dividends still lying dormant in the country.
The Johannesburg Stock Exchange (JSE) has raised concern over this amount, urging residents to check if they or their families are owed money.
According to BusinessTech, to date, more than 10,000 people have been identified as beneficiaries, but there is still a long road ahead.
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Vuyo Lee, the JSE's Director of Marketing and Corporate Affairs, also urged South Africans to check whether they or their families are owed any dividends.
She explained that many people may not even realise they have money due to them.
According to Lee, there are four main reasons why dividends remain unclaimed:
- Changed banking details: People often change their banking details without notifying the listed company, so when dividends are paid, the payments bounce.
- Changed addresses: Many also change their residential or work address, and without updated details, companies are unable to trace them.
- Lack of awareness: There is still a widespread lack of awareness. As Lee put it: "A lot of people don't know how dividends work, so they purchase shares and don't realise that those shares pay dividends—and they don’t claim them."
- Deceased estates: A significant portion is tied to deceased estates. Lee noted that many investors pass away with shares or investments in place, but the money remains unclaimed when no one follows up.
To address the issue, the JSE has launched a claimant campaign.
"We are inviting members of the public to come forward and check on our portal, which is on our website, whether they’ve got unclaimed dividends," Lee said.
The scale of the problem is huge: out of the 600,000 shareholders being managed in this campaign, about 52,000 accounts are linked to deceased estates.
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Lee also reminded people of the basics: "A dividend is a portion of the company's profits that it is giving back to its shareholders," she explained, emphasising the importance of keeping personal information up to date.
"It is important for the public to be aware of this. If you just want to check, please call us on 0861-401-105 and speak to the claimant campaign at the JSE," she said.
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