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How to Handle Scrip Dividends

Learn how to account for scrip dividends, bonus shares, and rights issues

Scrip dividends refer to dividends that you chose to take as shares instead of cash. StocksCafe lets you tag these transactions so that you can easily keep track.

How to handle scrip dividends/re-invested dividends

  1. From the collected dividends tab, under the “Scrip” column, click on Create. lt will bring you to the new transaction page and some fields are automatically filled out for you.
  2. Fill in the fields that are not automatically filled out (in bold below)

Action = Buy

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

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

StockCode = The company/stock that is issuing the shares

Date = ExDate of the dividend
Reason: It is important to set this to the ExDate so that StocksCafe knows which dividend this scrip dividend corresponds to

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, this is so that StocksCafe knows which dividend this scrip dividend corresponds to.

Units Purchased/Sold = Shares that you will receive

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

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

Fees = 0 (you can just leave it blank since it defaults to 0)

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


FAQ

Can I take dividends from one stock and reinvest into another? e.g Take dividends from Singtel (Z74) and use the dividends to buy STI ETF (ES3).
Yes, you can technically do that. StocksCafe will highlight the scrip dividends box in red (see image below) but it is perfectly fine to ignore.
Updated on 21 October 2021

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