In July 2019, Centrica announced with its interim results that it was terminating the Scrip Dividend Programme with effect from the 2019 interim dividend. Shareholders who had previously enrolled in the Programme received their dividends in cash – either as a cheque or directly into their bank account where bank details were held on file.
Cancellation of the Scrip Dividend Programme FAQ
I was enrolled in the Centrica Scrip Dividend Programme and was expecting to receive the 2019 interim dividend, paid on 21 November 2019, in shares. Why did I receive my dividend as cash?
I received a cheque/bank credit for a small amount which was described as an ‘accumulated residual entitlement’. What is this for?
After the number of shares was calculated for each scrip dividend there may have been a small amount (less than the price of one share) left over. This small amount is referred to as an ‘accumulated residual entitlement’. Under the terms of the Scrip Dividend Programme, the Company is required to pay the residual amounts to participating shareholders on the termination of the Programme.
Why has Centrica terminated its Scrip Dividend Programme?
Historically, the vast majority of shareholders has chosen to receive dividends in cash. Many of these shareholders have advised the Company that they are concerned that the issue of new shares under the Scrip Dividend Programme had a dilutive effect on their shareholdings. The Company has listened to shareholders’ concerns and, having taken the feedback into account, took the decision to terminate the Scrip Dividend Programme with effect from the 2019 interim dividend.
Is Centrica replacing the Scrip Dividend programme with a Dividend Reinvestment Plan (DRIP)?
There are no plans to introduce a DRIP, currently. However, this will be kept under review.
Now I receive my dividend in cash, can I have them paid directly into my bank account?
Yes, we encourage all shareholders to have their dividends paid directly into their bank accounts since this is the fastest and most secure way to receive dividends. Details of how to sign up for direct dividend payments can be found here https://www.centrica.com/investors/shareholder-centre/dividends/