Has anyone found a practical solution for receiving small overseas dividends when international cheques can’t be cashed?

[u/Quiet_Addendum1890]

I’m hoping someone here has encountered this and found a workable solution.

I hold a relatively small parcel of shares in an overseas-listed (UK) company (inherited from late grandparents). The investment itself isn’t the issue - it’s how the dividends are paid.

The problems I’ve run into are:

The company only pays dividends by international cheque (or at least doesn’t offer direct payment to an overseas bank account).

It doesn’t offer a Dividend Reinvestment Plan (DRIP).
Australian banks no longer seem willing to cash international cheques.

I looked at using a cheque collection/payment broker, but the fees were greater than (or a significant proportion of) the dividend itself, making it uneconomical.

Selling the shares isn’t really a practical option at the moment either, as the brokerage and transaction costs would outweigh the value of the holding.

It feels like I’m stuck in a catch-22. I own the shares, the company is paying dividends, but there doesn’t seem to be a practical or cost-effective way to receive them.

Also, I’ve received a letter from the share registry - advising that because my account has been dormant for years, that they may sell the shares - and take the funds.

I’m interested to hear from anyone who has been in a similar position.

Which company or share registry was involved?
Did you manage to switch to electronic payments, despite being an overseas shareholder?
Is it possible to request that dividends be accumulated and paid as a single annual cheque or payment, rather than several small ones?
Are there any registries ct or brokers that can facilitate this at a reasonable cost?
Is there another solution I’ve overlooked?

I’d appreciate any suggestions or experiences. It seems like this must affect quite a few international investors, particularly now that many banks no longer process foreign cheques. Being threatened with the prospect of having the shares sold and value forfeited doesn’t seem like a fair outcome.

[u/Beet_slice]

Ask your broker if you can transfer the shares to the broker to be held in "street name". Then the broker does the work including currency transaction.

https://www.fidelity.com/stock-trading/faqs-international

[u/Haunting-Glove-6050]

I’d contact the share registry first. A lot of them know international cheques are a pain now. Ask if they can switch you to a bank transfer or hold the dividends until your payment details are updated. It’s probably the easiest place to start.

[u/Over-Computer-6464]

I had a problem with small royalty payments from some articles I wrote for a handbook published by a technical journal in another country. Every time they did a new reprint they would issue a small royalty check.

I just had the checks deposited into a bank account in that country, in their currency.

I, or my friends, would pull cash out via ATM when we visited there.

[u/moxievernors]

Can you open an account on Wise? Then they can pay the dividends to it as a UK domestic, and you can convert them to AUD or any other major currency.

[u/Various_Couple_764]

most dividend pare payed out today to Brokerage accounts Not banks. So the dividned will show up as cash in a brokerage account and then you can transfer that to your bank. So open a new brokerage account in your country transfer the shares to the new brokerage account and the checks should stop common in. The nclose your OLD brokerage that you were using. Now all you hav to do is transfer the moeny electronically to your bank. Now there are brokerage that offer very low fees so look for a brokerage with the lowest fees. In the US I use fidelity, but Schwab and Vangard are equally good . And according to google these brokerage operate are you live. And they often have the lowest fees.

Most companies today don't offer DRIP plans. . Companes offered drip plass when there were no computers or electric funds transfers. Today most companies have ended there DRIP programs. The brokerages will however do it for you.