A share is simply proof of ownership of part of a company. The more shares you have, the more of the company you own, and you become known as a shareholder. This proof of ownership is represented by a share certificate, which today, is recorded electronically. ​
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As a shareholder, it means that you have access to your share of the company’s earnings and any voting rights attached to the shares. It is important to note that being a shareholder does not necessarily mean you have a say in the day-to-day running of the business or that you can take items from the company where you hold shares (e.g. free clothing from Woolworths).​
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Companies sell shares so that they can raise the money needed to grow and expand their business, and to carry out certain projects to generate more income. These companies can sell shares either publicly or privately, and you can buy different types of shares.

Dividends are how a company rewards or pays out a portion of its profits to shareholders/ investors. It is important to note that not all companies pay dividends, even if they are profitable. They can choose to do several things with the profit made such as:​

• Re-invest it into their business​
• Pay off debt ​
• Pay a portion of these profits to their shareholders (i.e. dividends)​

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It is the company board's discretion whether to pay out dividends to shareholders and how much to pay in dividends. For instance, if I invested R1000 at R10 each with 100 shares, it pays out 20c per dividend I would get R20.*​
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*Brokerage costs and taxes are not included in these examples

If the company in which you own shares produces a profit, the profit can be shared amongst the company’s shareholders in the form of a dividend payment.

The board of directors decide on the dividend amount /rate based on the company's most recent earnings. Dividends may be paid in cash or additional shares.

The frequency of dividend payments differs depending on the company in which you own shares. Some companies may pay dividends annually while other companies may pay dividends bi-annually or quarterly.

Dividends received by individuals from South African companies are taxed at a rate of 20% which is withheld by the entities paying the dividends to the individuals.

All you need to check if you have any unclaimed dividends owed to you is your ID number. If you do have unclaimed dividends you will need to complete and update your details with either our call centre agent or on the JSE Sharehub platform. You will also need a proof of address and banking details in order to conclude the process.

The timeframe depends on whether we received all your required FICA documents and proof of ownership. Once all documents have been received and validated, payment will be processed into your bank account within 5 business days.  

To check on behalf of any third party, you should obtain the necessary power of attorney / letter of executorship / letter of authority from the Master of the Supreme Court.

For deceased estates, the following documentation is required:

1. Letter of Executorship / Letter from the Master of the Supreme Court
2. Death certificate
3. Proof of banking details for deceased estate
4. Proof of residence for beneficiary
5. Proof of residence for Executor
6. Proof of banking details for beneficiary
7. Beneficiary’s Selfie with ID document
8. Beneficiary’s ID
9. Executor’s Selfie with ID document
10. Executor’s ID
11. Proof of ownership / copy of share certificate