How to handle Scrip dividends (or re-invested dividends) properly?

Sometimes, we have the option to choose between cash or shares when companies give out dividends.

In this tutorial, we will discuss how to properly handle the case where you have chosen shares in StocksCafe.

It is very simple. All you need to do is to create a new transactions with the following settings.

  1. Action = Buy

  2. Add to Cash Transactions = Checked
    Reason: You will receive the dividends in cash transactions and hence should check this so that your cash balance would balance.

  3. Scrip Dividend = Checked
    Reason: To indicate that this is a scrip dividend transaction

  4. StockCode = The company/stock that is issuing the shares

  5. Units Purchased/Sold = Shares that you will receive.

  6. Price Paid/Received = Total amount that you would receive if you have chosen cash / Shares you will receive

  7. Date = ExDate of the dividend
    Reason: It is important to set this to the ExDate so that StocksCafe can know that this scrip dividend transaction is for which dividend.

  8. Portfolio = The portfolio that would have received the cash dividend if you did not opt for shares
    Reason: It it important to set this correctly. Again, so that StocksCafe can know which dividend is this scrip dividend transaction is for.

  9. Currency = Currency in which the amount the dividend is given in (or leave it blank if the trading currency is same as dividend currency)

  10. Fees = 0 (or just leave it blank since default is 0)

  11. Total after fees = Total amount that you would receive if you have chosen cash (or leave it blank as it would be auto compute as Units x Price)
    Reason: It is important to ensure that it is the same as you would have receive if you have chosen cash as it is how StocksCafe know how much dividends you have re-invested.

Also, it is recommended to read this forum post as well for more context.

If you are thinking of how to handle part scrip and part cash situations, please read this tutorial.

Note to self: This post is linked from StocksCafe. DO NOT DELETE.

1 Like

Hi, i just did an update on the script collected for Mapletree NAC Tr following exactly the steps above.
my shares did increase, but the cash dividend collect did not subtract off, the result seems to conclude that i had script and cash (equal to script amount).

Basically the dividend amount before i update script and after remains the same, is it meant to be this way or did i miss any step?

image

Regards
Thanks.

Hi,

Yes, it is not supposed to change. The only place where you will see changes is here => https://stocks.cafe/personal/portfolio/xcollected?label_id=-1

It is because scrip dividends or not, you still did “received” the dividends, just that you used them to buy more shares of the same stock.

Cheers,
Evan

Hi Evan,
thanks for the clarification, all clear.

Cheers

1 Like

Hi, it’s the first time I am receiving scrip dividend and I am still a little confused about it despite reading the guides. Let’s take the recent scrip dividend exercise by OCBC for example. Am I correct to take the total dividend I am supposed to receive, divided by the total number of shares I receive? For example, I am supposed to receive 95.4 and got 13 shares. Would my units purchased/sold be 13 and price paid/received be 95.4 divided by 13 = 17.338. When I did this, the price on the transaction page is red and the total is also red when I mouse over. Is this normal? Thank you.

Hi Marcus,

This looks good to me.

This is likely due to the date of transaction. StocksCafe assumes that the date of transactions should be ExDate of the dividend. (I remember some requested to add in PayDate as well but forgot if I already did it)

Cheers,
Evan

I think your math is off here. 95.4/13=7.3384 which is the correct cost of the new shares.

@maplebob Thanks! Opps… Did not check the calculation properly :slight_smile: