How a dividend reaches a JSE shareholder: declaration, register, payment, tax

A dividend is a company's decision to pay part of its profit to its shareholders, at so many cents per share. On the JSE it reaches you only if you are on the register on the record date and the company's payment goes out through the electronic system to the broker or bank that holds your shares. This page follows that chain.

The declaration

The board declares a dividend, usually with its results, and announces it to the market. The announcement gives the amount in cents per share, the last day to trade, the record date and the payment date. A South African announcement often adds the tax treatment, because dividends carry a withholding tax for most individuals.

The announcement is the primary record. This site could not read the JSE's announcement service tonight, so it prints no amount and no date for any company.

Who gets paid

The company pays the holders on its register on the record date. Shares are on the register only once a purchase has settled, so a purchase has to be made by the last day to trade, which falls some trading days before the record date. The first day on which a new buyer no longer qualifies is the ex-dividend date.

How many days before depends on the exchange's settlement cycle; your broker can tell you the last day to trade for a given dividend.

From announcement to payment

Tax on the way

Dividends from South African companies are subject to dividends tax, withheld before payment at a rate the law sets (SARS states 20% for dividends paid on or after 22 February 2017 on its Dividends Tax page, read on 6 November 2026; check it for the current rate and for exemptions). What you receive is net of it.

Some holders are exempt, such as certain funds and companies, and the broker or participant applies the exemption if you have given the right declaration.