Plus500 Ltd (LON:PLUS) has just issued an announcement through the London Stock Exchange newswire stating that it will distribute a dividend payout to its shareholders for the first half of 2015. Shareholders of the company will receive $0.2121 per share, which is about 60 per cent of total profit registered up to the end of June 2015.
The brokerage will distribute the proceeds on the 29th of February 2016 and will be registered on the 8th of January with the shares of Plus500 Ltd (LON:PLUS) trading ex-dividend on the 7th of January.
The shareholders of Plus500 Ltd (LON:PLUS) who are not Israeli residents will be entitled to apply for a reduced withholding tax rate. According to the Israeli Tax Ordinance (ITO) and regulations the rate of withholding tax on dividends paid by dividend paying companies in Israel is 30 per cent for distributions to shareholders whose stake is at least 10 per cent , and 25 per cent for the rest.
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These shareholders must apply to the Israel Tax Authority (ITA) and obtain a certificate which will permit them to pay a reduced rate of the withholding tax rate.
Despite a challenging year, the shareholders of Plus500 are still benefiting from a very handsome dividend policy, a practice that is common for a number of publicly listed brokers. CMC Markets is another brokerage which is rumored to be nearing an IPO in the coming quarters subject to market conditions. The company has chosen to pay out 75 per cent of its net income as dividends for the first half of 2015.
Shares of Plus500 Ltd (LON:PLUS) are currently trading at a 5 per cent premium to the acquisition price agreed with Playtech (LON:PTEC) back in June.