Original article: SA has R4.5bn worth of unclaimed dividends. You could be owed some
Originally published on: Sunday Times - Latest news from SA, World, Politics and Lifestyle
24 January 2025 - When people retire, change banking details, move homes or lose track of their investments, the shares they own in companies — and the dividends those shares earn — often go unclaimed. In SA, this has led to billions of rand sitting uncollected, with many people unaware they have money waiting for them. If you’ve ever invested in a company, worked for one that offered shares, or simply forgotten about old investments, you could be owed dividends.
Research from the Financial Sector Conduct Authority (FSCA) shows there is nearly R88.56bn in unclaimed assets across the financial sector, with R4.5bn of these assets being unclaimed dividends. Factors like poor record-keeping, outdated banking details, changes of address and moving jobs without checking on employee share schemes have made it difficult to trace rightful owners.
Returning these funds could have a profound economic impact on the everyday lives of South Africans. This guide will help you understand what unclaimed dividends are, how shares work, why these funds go unclaimed, and how you can reclaim what’s rightfully yours.
What are shares?
Shares are units of ownership in a company. When you buy shares, you are essentially purchasing a piece of that company. Companies issue shares to raise money needed to grow the business. For example, if you invest R1,000 to buy 100 shares at R10 each, you own a portion of that company and may have the right to receive dividends or a payout when the company opts to distribute its profits. You can also receive shares through employee share schemes, where part of your compensation is invested in the company or given to you as an incentive.
What are unclaimed dividends?
Cash dividends are payments made by companies to their shareholders or investors from a percentage of their profits. When people do not claim these payouts, they become unclaimed dividends. Outdated banking records, address changes, deceased estates with no stated beneficiaries, and moving jobs without inquiring about employee share schemes contribute to this issue.
The scale of the issue
In SA, there is approximately R4.5bn worth of unclaimed dividends ready to be claimed. Currently, about 309,900 South Africans are eligible for unclaimed dividends from companies like Old Mutual, Sasol and Naspers, to name a few.
Claiming unclaimed dividends is not just about accessing funds; it can significantly enhance your financial wellbeing and maximize your investments.
Unclaimed dividends and their underlying shares can be used to bolster your investment portfolio and meet your financial goals.
Several prominent companies with shareholder bases of unclaimed dividends have joined the Johannesburg Stock Exchange's (JSE) charge to financially empower South Africans by providing resources and guidance on how to claim their rightful benefits.
Here are all the companies participating in this 'Claim It' initiative:
• African Media Entertainment Ltd
• Finbond Group Ltd
• Wilson Bayly Holmes-Ovcon Ltd
• YeboYethu
• Advtech Ltd
• Cashbuild Ltd
• Super Group Ltd
• Naspers Ltd
• Mpact Ltd
• JSE Ltd
• Reunert Ltd
• Merafe Resources Ltd
• Northam Platinum Holdings Ltd
• Growthpoint Properties Ltd
• Old Mutual Ltd
• Sasol Ltd
• Sasol SA Ltd / Khanyisa
• Sasol Inzalo
Employee share schemes
Former employees who were likely part of an employee share scheme, where part of their pay cheque was invested on behalf of the employee, may have unclaimed dividends. If you or a family member have worked for one of the companies listed above, especially between 2004 and 2017, you may be entitled to compensation
How to check if you have unclaimed dividends:
The process is straightforward.
- Gather documentation: Prepare necessary documents such as your ID, contact details and proof of address. The JSE will then verify with the department of home affairs whether the details provided correlate with those of the shareholder.
- Visit the JSE website to get guidance on how to claim.
- Call JSE Investor Services on 011 713 0800 and the team will provide guidance.
To ensure that you stay up to date with your investments, maintain your correct contact details and have digital access to key information about upcoming events and initiatives such as the AGMs of the companies you own shares in, create a profile on ShareHub, the JSE’s shareholder communication platform.
Why trust the JSE?
The JSE is committed to transparency and accountability in managing unclaimed dividends. The exchange has successfully reunited thousands of investors with their funds through JSE Investor Services, which has processed over R408m in claims over the past five years.
It’s never too late to claim what is rightfully yours. Whether you’re unsure about your eligibility or need assistance with the claims process, resources and support are available to help you. For more information, visit the JSE website and follow the exchange’s social media accounts on Facebook, X and LinkedIn.