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Question

How do you calculate my residual holding for a Scrip Dividend?

Answer

A Scrip Dividend is a portion of corporate earnings paid out to shareholders with the issue of new shares in shares in lieu of a cash dividend. This option would be chosen at the account opening stage and will be applied to all Optional Scrip Dividends.

"An example of a Scrip Dividend calculation can be found below:

EXAMPLE SCRIP CALCULATION

Parent Shares (shares you hold pre dividend) = 2658
Scrip ratio (set by the company) = 119.345
Dividend cash Rate (set by the company) = 1.5p

(i) Parent shares/Ratio = Scrip Shares Due (rounded down to whole Number)

(i) 2658/119.345= 22 new shares

This is the number of new share you will receive, to calculate the cash you will receive we need to perform the following calculations:

(ii) New Scrip shares x Ratio = Fractional Holding (Rounded up to whole number)

(ii) 22 x 119.345 = 2626

Then


(iii) Parent Shs - Fractional Holding = Shs to receive Residual Cash

(iii)2658-2626 = 32

Then

 

(iiii) Residual Holding x Cash Rate = Residual Cash Due

 

(iiii) 32 * 1.5 = 48p

 

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