Scrip dividends refer to dividends that you chose to take as shares instead of cash.
Learn how to handle scrip dividends (including part-shares, part-cash cases), bonus shares, and rights issues.
Recommended method: Tagging transactions as scrip
The result of using this method is that dividends will be recorded as received, and that the shares received were “purchased” at the cost of the dividend amount.
- 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.
- Complete fields that were 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.
Number of Shares = Number of shares that you will receive
Price Per Share = This is calcluated by: Total amount that you would receive if you have chosen cash ÷ Number of shares you will receive
e.g. If you received 10 shares instead of $50, you would enter $5 for this field
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. - Click Add and you are done.
Alternative method: Treating scrip dividends as free shares
The result of using this method will be as if dividends were never received, and shares received cost $0.
StocksCafe does not recommend this method, as it distorts both the dividend yield as well as the cost of purchasing the shares, but some people prefer to record it this way so we are documenting how to do so here.
- On this page, delete the paid out dividend by clicking on its trashcan icon.
- Create a new transaction.
- Fill out the fields as appropriate:
Action = Buy
Add to Cash Transactions = Unchecked
Reason: No difference as cost is $0.
Scrip Dividend = Unchecked
StockCode = The company/stock that is issuing the shares
Date = Date the shares were received
Portfolio = The portfolio that would have received the cash dividend if you did not opt for shares
Units Purchased/Sold = Number of shares that you will receive
Price Paid/Received = $0
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 = 0 (or leave it blank as it would be auto-computed as Units x Price) - Click Add and you are done.
How to Handle Part-scrip, Part-cash Cases
Sometimes, companies provide an an option to take the dividend as part shares and part cash. This is how to handle such cases:
- From the collected dividends tab, under the “Scrip” column, click on Create.
- Fill out the fields (refer to explanation of fields above if needed).
- Click Add and you are done.