UPDATE Oct 2021: Find the comprehensive tutorial on Scrip dividends on StocksCafe Academy.
Some companies/stocks regularly give the option to receive dividends as either cash or shares. Often, to encourage investors to choose shares, they would even offer them at a discounted price to the currently traded price.
All along, StocksCafe has always assumed that users would choose cash because it is easy to implement and in my opinion, that is what happens even if you chose shares. You received the cash and used that money to buy more shares. Many investors, however, would prefer to have a way to account for that.
Thus, last weekend, I dedicated some time to implement this. You can now tag transactions to be scrip dividends so that it is clearly accounted for which dividends you have chosen to take as shares instead of cash. You can also see how much dividends you have reinvested yearly.
How to tag transactions as Scrip?
StocksCafe has made is simple to tag dividends as Scrip:
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.
There will also be validity checks to ensure that you have entered scrip transactions correctly. StocksCafe will check two things:
1) Whether there is a corresponding dividend on the same ExDate as the scrip transaction date.
2) Whether the total amount of the scrip dividend is less than or equal to the total amount of dividend that you would receive.
If any of the above two conditions is not satisfied, you will see the Scrip column in red on the transactions overview page.
How do you know which dividends are tagged as Scrip?
You can see them on the dividends collected tab. The charts will also be updated to reflect the scrip amount vs cash amount. You can also see how much dividends you have reinvested on a yearly basis.
Note: With this, I believe there will be no reason for users to remove dividends hence that ability is removed. If you have previously removed dividends due to taking shares instead of cash, I recommend deleting the override and using this new approach from hereon. If you still believe there is still a need to have the ability to remove dividends, please let me know.
Question: Does it support part scrip part cash?
Answer: Yes, it does. Simply enter a scrip transactions with the amount that is scrip and StocksCafe will automatically handle it 🙂
Based on comments below, decided to put back the ability to remove dividends