DBS vs OCBC and UOB - Part 2

[pcmdan]

DBS (SGX05) vs OCBC (SGX:O39) vs UOB (SGX:U11)

Kinda weird that DBS shares price is performing so differently with the other 2 local banks for today. Any ideas for the different direction?

 

[pcmdan]

Reserved for updates.

 

[hwzadmin]

This is a continuation thread, the old thread is here

 

[Sausage]

Eg. you own 1000 OCBC shares.
Dividend is 20 cents.

Option 1: Take $200 cash. You get $200 cash in your bank account.
Option 2: Take scrip at $10.15 a share. $200 dividend by $10.15 = 19 shares. You get 19 shares making you have 1019 shares and no cash payout.

Note that scrip issuance dilutes existing shareholders. In order to maintain your percentage ownership of the company, you must take scrip. If you do not, your stake would be diluted as the company now has more outstanding shares issued. This is a reason why a scrip is not a true dividend.

The extra 19 shares have to be sold in the unit share market which has a different share price from the mainboard as it is not in the normal board lot of 100. Of course, you can keep taking scrip till you have a standard lot of 100.

Personally, i just take cash for various reasons. I do own a small amount of OCBC shares.

Thank you,does this mean it's the same as a rights issue?
Assuming I don't buy new shares through this, when you say my percentage ownership is diluted, does it mean that for holding the same amount of shares, in future I will get less dividend? (Assuming the dividend payout per share is the same)?

Sent from Xiaomi MI MAX using GAGT

 

[Mecisteus]

Thank you,does this mean it's the same as a rights issue?
Assuming I don't buy new shares through this, when you say my percentage ownership is diluted, does it mean that for holding the same amount of shares, in future I will get less dividend? (Assuming the dividend payout per share is the same)?

Sent from Xiaomi MI MAX using GAGT

Rights issue and scrip dividends are not the same.

Rights issue is for company to raise capital through selling of more shares.

Scrip dividend is a plan for shareholders to reinvest in the company. In a way, the company preserves their capital instead of distributing dividends.

If you don't choose scrip, the impact of dilution is going to be very minimal.

Assuming all shareholders take scrip, impact is just a factor of the % equivalent to the dividend yield.

As a shareholder, you choose scrip if you believe in the company by reinvesting in the company.

You take cash if you want to invest elsewhere or if you need the money. Don't worry about dilution about through scrip dividends. Number of shares can still go down if the company does buybacks.

 

[endlssorrow]

Bro suggest u go read more about this 2 man..

Thank you,does this mean it's the same as a rights issue?
Assuming I don't buy new shares through this, when you say my percentage ownership is diluted, does it mean that for holding the same amount of shares, in future I will get less dividend? (Assuming the dividend payout per share is the same)?

Sent from Xiaomi MI MAX using GAGT

 

[Mergui219067]

Ocbc has done share buybacks regularly , so dilution is not a major issue.
And DRP is probably not very significant too.

 

[luei74]

In #8.....huat huat huat!!!

 

[Mergui219067]

I still have 81 shares @ $10.07 & my wife 40 shares @$9.60 from previous DRPs . These also collect DRP.

So I accumulate 81+ another 38 DRP shares soon .
I will sell my 2100 shares at one shot later with 20 shares left for future DRP accumulation.

 

[BeHappyLo]

Kinda weird that DBS shares price is performing so differently with the other 2 local banks for today. Any ideas for the different direction?

all shrink in fear liao la over their PAPER gains………..only I gave my position. so what if i was wrong in 1 counter.
my realised profits oredi in bank account and re-invested elsewhere.

many back cannons shout loud loud………….common human trait.

 

[fun4life]

For OCBC dividend ($20c) to be paid in Oct, OCBC is now offering to reinvest into its share at the price of $10.2. It seems a good deal. But how about the odd number shares generated? Must I sell seperately via Unit Share Market, with extra cost?

Is it same for odd number shares inside SRS account, also same and must sell via Unit Share Market?

 

[madtari]

Whatever... ur own money, as long as u happy can already. But I still think it's funny to sell at 20, only to buy back at an even higher price of 25.

That's e main point I was trying to bring across. Nvm if u think otherwise or didn't catch that. Bye.

That’s what u are : bragging about paper profits!
Moreover, thanks for the compliment that u think my level of $25 will hold for you to ‘’profit ‘!

If it drops to $19, your PAPEr gain is less than mine.

Now u know talking about paper gains is vanity??!!

Obviously u r a green horn. I bat more and harder at $14 rather than $25. So buying at $14 and selling at $20 to a silly ass is ‘buying high and selling low’ ...... laughing.

 

[madtari]

Round down then.

What if my OCBC shareholding is held via SCB?

 

[linusz]

Bookmarked

 

[czycius]

Round down then.

So assuming I have 100 shares, the dividend will be $20 and at a scrip dividend issue of of $10.20, SCB only will give me 1 share? Thus effective issue price becomes $20 for that one share.

 

[madtari]

Yes. Cos imagine they got 10 customers each holding 100 shares, so in total, the custodian account holds 1000 shares and they will get 19 shares as scrip. You can't expect them to buy that extra 1 share so they can round up for all customers right?

So assuming I have 100 shares, the dividend will be $20 and at a scrip dividend issue of of $10.20, SCB only will give me 1 share? Thus effective issue price becomes $20 for that one share.

 

[Sausage]

I bought with scb so I don't have the full text of the ocbc scrip
Where does it say the sale price? And how many are you entitled to per 1000 shares owned?

Sent from Xiaomi MI MAX using GAGT

 

[czycius]

They should refund remaining via cash since that will be fairer.

Yes. Cos imagine they got 10 customers each holding 100 shares, so in total, the custodian account holds 1000 shares and they will get 19 shares as scrip. You can't expect them to buy that extra 1 share so they can round up for all customers right?

 

[Squaredot]

Shares with CDP.
DRP at $10.15.
20 shares per 1000 shares. Round up.

 

[homedriver]

Shares with CDP.
DRP at $10.15.
20 shares per 1000 shares. Round up.

Must hold a lot then worth.