Because you don't have the money yet - so you are creating an unnecessary cash flow impact. I am sure that OST would have thought of this, so what is the benefit to you of paying out the dividends before the funds are received?
want to clarify somethings simon. 1) do you guys settle the divs 5 biz days after LDT? in that case mtn LDT+5=today, but bvt LDT (16 sep)+5=23 sep. so why i get bvt div 2day? not complaining-just want to understand. 2)am i right in saying that we then earn paydate-LDT-5 days worth of interest for free (which would be great,but theres no free lunch so prob not)? or do we only earn the interest from the recorded paydate? thanks
Its just numbers in a computer, you don't have the cash and you cannot access/draw it till T+5 days anyway and zero interest earned on those 5 days. Psychologically making you happy to be with a Bank that's "Moving Forward";-) and you can re-invest it if you want...
OST gives you the money at no cost but the only thing you can do with it is spend it on shares where they earn commission. If you got it 5 days later you might just transfer it out and then no gain for SB. Also these amounts might be smaller than your normal trades and small trades have higher margins for SB.