Dividend-in-specie (Tencent and JD)

Q&A
41

I have started a new thread. Not sure how to Propose New Event though, i hope to learn from this first one and the next time i can contribute better :slight_smile:

1 Like
42

Hi Evan, I clicked on Accept at StocksCafe. We didn’t pay for the in specie 0.057 CapitaLand Ascott Trust units. How do we reconcile this with the price of $1.08 in the override?

43

Hi there,

Thank you for reaching out.

The way we think about this is that SGX:9CI paid you dividends but “forced” you to purchase those SGX:HMN shares.

So, I would suggest to add a dividend override over here → Override Dividend Collected

Cheers,
Evan

44

Hi Evan, thanks! The problem is, there’s no entry to override as we did receive the dividend of $0.12. You see the dilemma now?

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45

Hi there,

Hmm… These are separate in my opinion.

You should still override a dividend of (1.08 x 0.057) = SGD 0.06156 since that is the price we input for HMN (SGD 1.08) and the number of HMN shares (00.57) that we got => StocksCafe

This is because

  1. Yes, you received a dividend of SGD0.12 per share of 9CI which is accounted for by the dividend you shown above

  2. But you also did receive some shares of HMN worth about SGD 0.06156 per share of 9CI that you have hence we should also create a dividend override for this. The reason is because if 9CI “sold” those HMN shares instead, they could have paid you SGD 0.06156 additional dividends in theory.

ps: I should have created the dividend override as a package with the HMN shares event. So, my bad. But going forward, I will create future event with dividend override as required.

46

Hi Evan, can you please walk us through the steps to create this particular dividend override? I’m not sure how to do it.

47

Sure.

  1. Just to be clear that this is for this event since this thread is actually about Tencent and JD.

  2. You should also accept the above event before creating the dividend override

  3. Here is a tutorial on it on dividend override → How to Override Dividends - StocksCafe Academy

  4. These are the details
    Portfolio: Default (Since this is the portfolio where you have the stock)
    StockCode: SGX:HMN
    Shares: Number of shares you have before the new shares
    ExDate: 28 April 2023
    PayDate: 28 April 2023
    Currency: SGD
    Dividend Per Share: 0.06156

Cheers,
Evan