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US Shares - Cash or Scrip for Dividends

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  1. #11

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    Quote Originally Posted by traineeinvestor:
    I'd assume that this mechanism would result in the market price being fairly close to the NAV?
    RQI from CEF Connect.

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    (I'm still interested to see how they handle WHT -> DRIP issues)

  2. #12

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    I also have the stock with BOCHK, which doesn't give me the option to subscribe to additional stocks in lieu of the cash dividend.

    I guess you get what you pay for.

    shri likes this.

  3. #13

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    Quote Originally Posted by Flapster:
    I had the same thing with the LINK REIT divident (which I invested in recently). It offered me the choice of cash, or new issues.

    I understand it's generally offered at a discount, so went for the shares option.

    But agree, it's strange that there's no price mentioned.
    Same here, but usually shares are sold in lots in Hk. Would that affect the resale process? Probably not since they offered it, but I cannot be bothered to fill out the form so I’ll opt for the default option.

  4. #14

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    Quote Originally Posted by john_1122:
    I also have the stock with BOCHK, which doesn't give me the option to subscribe to additional stocks in lieu of the cash dividend.

    I guess you get what you pay for.
    BOCHK trading services cost more though than most banks.

  5. #15

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    Quote Originally Posted by MandM!:
    BOCHK trading services cost more though than most banks.
    No lah, they are much cheaper.

  6. #16

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    @john_1122 - checked with a couple of people including an RM at a bank similar to yours.

    - Stock will be delivered to your acct
    - WHT will be deducted from your existing cash from designated fulfilement account
    - RoC and other WHT payments will be made once the tax docs are filled by the issuer

    Last edited by shri; 09-07-2020 at 12:36 PM.
    MandM! likes this.

  7. #17

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    Don't you end up with odd stock lots which are difficult to sell later if you go for these options? Thats why I always go for the default cash option. That, and also the fact I can't be arsed picking up the phone and actually doing something.

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  8. #18

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    Quote Originally Posted by bdw:
    Don't you end up with odd stock lots which are difficult to sell later if you go for these options? Thats why I always go for the default cash option. That, and also the fact I can't be arsed picking up the phone and actually doing something.
    Probably requires a form, no thanks. lol

  9. #19

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    Quote Originally Posted by shri:
    @john_1122 - checked with a couple of people including an RM at a bank similar to yours.

    - Stock will be delivered to your acct
    - WHT will be deducted from your existing cash from designated fulfilement account
    - RoC and other WHT payments will be made once the tax docs are filled by the issuer
    I thought I didn't have to pay WHT, but a quick google search confirmed what you wrote. On the other hand, I don't need to pay broker's fees and stamp taxes. So no much benefit, but a tiny little bit.

  10. #20

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    Quote Originally Posted by john_1122:
    I thought I didn't have to pay WHT, but a quick google search confirmed what you wrote. On the other hand, I don't need to pay broker's fees and stamp taxes. So no much benefit, but a tiny little bit.
    Call your RM, not Google ...