Dividend payments by cheque being phased out 

 Durrant Pate/Contributor 

 As Jamaica’s banking sector begins phasing out cheque payments, listed companies are moving in this direction, as more of them are transitioning to dividend payments made directly to shareholders’ accounts via electronic funds transfer (direct deposit).

 This is being done as they transition away from dividend payment by cheque. Five listed companies have this week announced such a move. They are Wisynco, Sygnus Credit Investments, Sygnus Real Estate Finance, Knustford Express and Caribbean Cream Limited.

 They all will start implementing the switch to direct deposit dividend payment come January 1, 2027. The switch will ensure shareholders receive their payments in a more reliable, secure and convenient manner. 

 This change forms part of the wider effort to improve the shareholder experience while continuing to operate in a responsible and sustainable way and is done in partnership with the Registrar and Paying Agent, Jamaica Central Securities Depository. After this date, dividend cheques will no longer be issued, so shareholders who have not provided banking instructions may experience delays in receiving their payments. 

To ensure dividend payments continue without interruption, shareholders are encouraged to submit their direct deposit instructions well in advance of this date. Moving away from printed cheques reflects this company’s environmental stewardship commitment. 

 By reducing paper-based dividend processing, printing and mailing, these companies are helping to limit unnecessary resource use while offering shareholders a simpler and more efficient payment experience. 

 Benefits of direct deposit 

• Quicker receipt of payments: Your dividend is deposited directly to your bank account on the payment date, without the need to wait for or deposit a cheque. 
• Reduced risk: Electronic payments help avoid the common issues associated with physical cheques, including loss, theft, misplacement or fraudulent use. 
• Less effort for shareholders: Once your banking details are registered, future dividend payments will be made automatically to your account. 
• Easier record keeping: Direct deposits provide a clear banking record, making it simpler to confirm and track dividend payments received
• Eliminates the risk of lost, stolen, misplaced or fraudulent cheque transactions 
• Greater convenience: No need to visit a financial institution to deposit dividend cheques.