on this sentence: Price Paid/Received = Total amount that you would receive if you have chosen cash / Shares you will receive
So let’s say I have 5,000 shares of MIT; and I subscribed to Mapletree Industrial Trust’s script dividend.
DPU for that quarter: $0.0137
script Issue price: S$2.0193
So my total script, rounded down, will be 5000*0.0137/2.0193= 33 shares.
(ok i got 32 shares coz they treat 0.0112, 0.0012,0.0013 as three separate components and all rounded down)
So can you advice, for price paid/price received, what should I key in?
Hi Evan, I also have a question. I have added Scrip dividend for HSBC following the steps outlined in your tutorial. However, I noticed that in my portfolio, the dividends is not adjusted back to “0”. Case in point:
I originally had 1600 HSBC shares.
I received 19 shares as scrip (or equivalent to a dividend of USD 160).
I then added a new transaction: 19 shares, price paid:160/90=8.421. Date was set as ex-dividend date., etc.
In my portfolio, I now have 1619 shares, with the following metrics (in HKD):
P&L = +862.93 (+0.82%) Dividend = +1,265.87 (+1.21%) >> [equivalent to USD160]
P&L + Div = +2,128.79 (+2.03%)
P&L + Div + Cls = +2,128.79 (+2.03%)
My question is, should dividend not be reset to “0”, since I have technically “exchanged” that dividend for more shares.
I just think that it would make sense for it to be “0”, so that in my portfolio summary, I have a true idea of the actual cash dividend I actually received, and save myself the tneed to do a mental subtraction.
Am I thinking about this wrong, or have I missed a step somehow? .
If you prefer reset to ‘0’ then delete the cash dividend received.
Then, add a transaction for 19 shares at 0 cost.
The purpose of the new scrip dividend feature is to allow users to view at the period level, the amount of dividends taken in cash and in scrips.
My question is, should dividend not be reset to “0”, since I have technically “exchanged” that dividend for more shares. >> Can I also put it to you that technically, you received the dividends and later exchanged it for shares? If yes, then the new feature may allow you to see, at an annual level, the amount of dividends taken in cash and in scrips.
I think it is useful to further elaborate the pros and cons of each method.
Method 1 - Delete Cash Dividend & Add New Shares at Nil Cost
It should always decreases your average price per share and in turn, boosting your returns - this can be a pro or con, depending how you look at it.
Your dividend received becomes inaccurate (especially if you are an income investor, it would matter more).
Method 2 - Leave Dividend As is & Add New Shares at Lump Sum Cost
Increases or decreases your average share price as the case may be. Neither a pro or con IMO.
Dividend received would be accurate.
Note: I mentioned add new shares lump sum cost because the number of shares allocated to you may not be a simple calculation as (dividend/issue price). Instead, there could be several tiers of dividend within one XD. So, example, XYZ REIT issues me a total of 122 shares at an average price of $1.4425 (worth total of $178.985) but my dividend amount if taken in cash is $180, then I just reflect $180 as total costs after fees and treat the differential at cost involved in taking scrips =)
Used the scrip dividend function recently. Noticed that despite unchecking the cash transaction box, the dividend is till being added the cash balance ie one gets the additional share and also the cash dividend.
Sorry for replying so late. Been really busy with my day job
Anyway, I was thinking of working on this ticket. However, I realized that the current flow is somewhat correct. Technically, we did receive the dividends then used them to buy shares. So, I think there are two ways to handle this.
Just ensure that when we check “scrip dividend”, it will auto check “cash transaction” since dividends are received in cash transaction then that scrip transaction will deduct it out.
e.g. You received SGD 100 for dividends in cash transaction then deduct SGD 50 for scrip transactions.
This is easier to implement given current framework and actually clearer since we will know that we first received SGD100 then spent SGD50 for new shares.
Perform the computation backend and just show the final results if it is >0.
e.g. In the above example, just show received SGD50 for dividends.
This is more complicated to implement given current framework plus it might be less clear to why SGD50 is given instead of SGD100.
Either way, cash balance should end up to be the same and that is the original intended usage cash balance. To let users easily understand how much cash balance they have. (The transaction logs is not intended to be perfect)
