Shareholders have two very important rights.
You have the right to attend the annual general meeting (AGM) and vote according to your shares. You get one vote per share and most votes are carried by a simple majority (special votes require a 75% majority “Yes” vote).
You also have a right to share in the company’s profits. When a company makes a profit, it will announce this in its results. These are published every six months. The board of directors (as elected at the AGM) may than decide to return some of this profit to shareholders. This will be done in the form of a dividend and is usually announced with the results.
Dividends per share
The dividend will be declared in cents per share and the important date to remember is the last day to trade (LDT). If you hold the shares at the close of trade on this date, you will receive the dividend, regardless of when you bought the shares or when you sell them.