Aviva

A question about : Aviva

Got some information through last night from Aviva. I think it is asking whether or not I want to take my dividends as additional shares or if I want to keep getting the money transferred to my bank account. I assume all Aviva shareholders got this pack, if so is my understanding correct ?

We do not have that many shares (about 400 so what would be best ? Will I still have to pay the equivalent amount of tax if I decide to take shares ?

Thanks for your help
Ivan

Best answers:

• Have been using their Dividend Re-Investment Plan (DRIP) fro a few years now. They are replacing this plan with the new one. I think (although I'm no expert) the main difference is how AVIVA get the shares. I think with the old plan they used to bundle together the re-investment monies and then buy shares on your behalf on the open market. Under the new plan they are issuing new shares to cover the monies to be re-invested.
  To answer your question "What to do". This depends on your circumstances. Do you want/need the dividend twice a year? If not and you have these shares merely tucked away for a rainy day (like me) then I am re-investing the divi's in shares, just to grow my holding; also if you are a higher rate taxpayer taking the extra shares means you won't have to pay the tax man extra from your divi's and can mange how / when you dispose of the shares in case of capital gains tax considerations.
  cloud dog