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Erik Tan asked 2 years ago

Dear Fifth Persons, 
I have a question regarding scrip dividend. I have an account with poems, and will be receiving a dividend of $36 from dbs. They offered me a scrip dividend of 1 share at $23.93, but with a handling fee of $10.70. Will you recommend me to opt for cash in this case? I’m not sure because they also have the option to request for scrip dividend for all future transactions, and I don’t know which to choose. I’m also assuming handling fee will be implemented every single scrip dividend payout.
Best regards, 

Jieren Zheng replied 2 years ago

Are you using a custodian account? CDP holdings shouldn’t be subjected to handling fees

Jieren Zheng replied 2 years ago

Wow, that’s really expensive man

1 Answers
Victor Chng answered 2 years ago

Hi Erik,
As for which option to take, I will usually take cash dividend. The reason is if you take scrip dividend, you will end up with odd lots. Odd lots are usually sold at discount to the actual price so I rather take cash dividend. You can always purchase the stocks off the market without incurring odd lots. 

Erik Tan replied 2 years ago

Thank you so much Victor! Very helpful, as always!

Victor Chng replied 2 years ago

Welcome Erik :)