The London Stock Exchange’s updated dividend guidance sets out key announcement requirements and flags dates companies should avoid as the UK moves to T+1 settlement
The London Stock Exchange (LSE) has published its Dividend Procedure Timetable for 2027.
Guidance on dividend timetables
A timetable that follows the guidelines set out in the Dividend Procedure Timetable need not be notified to the LSE in advance, provided the announcement of the dividend includes:
- unless stated otherwise, dividends as gross;
- the record date and payment date; and
- details of any scrip dividend, dividend reinvestment plan (DRIP) or dividend currency option, together with the election date.
Dividend details, including the dividend amount and currency, must be in the body of the announcement and not just referred to as being available on a web page/link, or included in a separate circular.
The LSE also reminds issuers that dividend information must be disseminated under the correct announcement headline category – dividends can be announced as part of an interim or final results announcement, or under the headline category ‘Dividend Declaration’. They should not be announced under any other headline category.
Any deviation from the Dividend Procedure Timetable must be agreed with the LSE’s Corporate Actions team in advance of the announcement of the dividend,
Impact of move to T+1 settlement cycle in 2027
The UK will move to a T+1 settlement cycle (from T+ 2) from 11 October 2027, meaning that a typical securities trade will settle one day after it is agreed, instead of the current two days. As a result of the move to T+1:
- after 11 October 2027, the ex-dividend date will be the same date as the record date, rather than one business day earlier;
- securities will not be marked as ex-dividend by the LSE in the period from 4 October to 18 October 2027 to allow the market to transition to the new settlement cycle; and
- to allow a buffer period, the first ex-dividend date on the T+1 cycle will be 22 October 2027.
Issuers should plan their dividend timetables with this in mind.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
