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dividend

Business Times - 04 Sep 2009


OCBC scrip dividend shares fixed at $7.02 each

OCBC Bank has fixed the price of each new share issued under its scrip dividend scheme at $7.02.

The bank said that the issue price is based on a 10 per cent discount to the average of the volume weighted average prices of OCBC shares for each of the market days in the price determination period of Aug 31 to Sept 2, 2009.

The scheme provides OCBC Bank shareholders with the option of electing to receive new shares in lieu of the cash amount of their entitlements of the bank's FY2009 interim dividend.

In addition to OCBC's shareholders with registered addresses in Singapore, the bank is offering the scrip dividend option to shareholders with registered addresses in Malaysia without requiring them to provide Singapore addresses.

This is the first time that a Singapore-listed company is making available the scrip dividend option to shareholders with registered addresses in Malaysia without requiring them to provide Singapore addresses.

'This is made possible by our regular review of the process in our effort to make the scheme available to a broader shareholder base,' OCBC said.

Other foreign shareholders with overseas addresses outside of Singapore and Malaysia who wish to be eligible to participate in the scheme would still be required to provide an address in Singapore by notifying the bank.

Notices will be despatched to all eligible shareholders with registered addresses in Singapore and Malaysia on or about Sept 16, 2009, said OCBC.

 

Personally I would take script.  This script is discounted to mkt price. Like the last one it was I think $4.83???You will end up with odd shares. Then you have 2 options, buy up to make one lot from the odd lot mkt may entail higher brokage or sell it later when the price is up.

 

Anyone care to advice, should I take the Script  OR Dividend?

 

I don't really know how to calculate but I went for script div the other time. It has given me good results though small. Now will be the same for me, still script.
Reasons: (1) start of bull, so script accumulation will reap results in the long run. (2) Div is taxable, capital gain is not. (3) Reinvest to run business (win-win).

In fact, I've just added OCBC lately. Will add more when it rises 10% and so on. Averaging up....
All the best. I think it is the start of bull. Ben said today, fundsupermart Wong SJ said as well. Many gurus have said as well. I think this is good for the bull. Bottomline is still confidence. If great depression has been avoided, what are all these small corrections? Worst is over, maybe. I'll be adding along the way up.

 

My understanding is this.  Suppose the price is S$8, OCBC will offer 10% discount, i.e. the share price will be S$ 7.20.  So if you have say 10 lots, your dividend will be S$140 x 10 = S$ 1400.

If you choose to receive script instead of dividend, you will be getting 1400/7200 x 1000 shares = 194 shares. 

In the long run, when OCBC shares hit S$10, you will have S$1940.  If we look at probability, with the USA getting out of recession (maybe they are already out in June 2009) and France, Germany, Japan, Hong Kong out in Aug 2009 and Singapore out in 2nd quarter 2009 and China and India expected to do well this year, it appears highly likely stocks will test its new high and OCBC will benefit as bell-weather of Singapore, with its strong presence in Great Eastern Life, riding the wave of property boom, and its massive undervalued property in Singapore, yet to be valued and developed.

 

What mean by script. Let say ocbc share price $8 per share, i will get 10%  discount mean $800 for buying 1000 shares..pls advise.thx

samloh28      ( Date: 18-Aug-2009 23:03) Posted: OCBC investors if you are not short of cash, it is definitely more worthwhile to go for script.  Simple reason being that OCBC share price, bearing any unforeseen circumstances, should head north.  OCBC is one of the largest property loan and its net profits for 1H 2009 is second only to Wilmar. And property is booming now in Singapore and OCBC will certainly reap the benefits. Just an indication: I had sold OCBC in Dec 2006, and bought into construction stocks then.  At Dec 2006, the price which I sold OCBC was S$ 7.75, which is about the present price now.  Thereafter, the bull run comes and OCBC went up to about S$ 10.  Looks like history will repeat itself.  With increasing revenue and profits, OCBC price should go up and when USA and Singapore economy starts to grow again, the bellweather of economy OCBC will certainly reap its rewards.  Not forgetting that many of OCBC property (such as OCBC centre) is grossly undervalued and yet to show its true value yet.

 

OCBC investors if you are not short of cash, it is definitely more worthwhile to go for script.  Simple reason being that OCBC share price, bearing any unforeseen circumstances, should head north.  OCBC is one of the largest property loan and its net profits for 1H 2009 is second only to Wilmar. And property is booming now in Singapore and OCBC will certainly reap the benefits. Just an indication: I had sold OCBC in Dec 2006, and bought into construction stocks then.  At Dec 2006, the price which I sold OCBC was S$ 7.75, which is about the present price now.  Thereafter, the bull run comes and OCBC went up to about S$ 10.  Looks like history will repeat itself.  With increasing revenue and profits, OCBC price should go up and when USA and Singapore economy starts to grow again, the bellweather of economy OCBC will certainly reap its rewards.  Not forgetting that many of OCBC property (such as OCBC centre) is grossly undervalued and yet to show its true value yet.

 

I think the cum dividend period is over, now is to determine the price if you decide to have it in scripts at 10% discount to the mkt price of the 3days or 14cts divy.

 

NOTICE OF BOOKS CLOSURE AND APPLICATION OF SCRIP DIVIDEND SCHEME TO THE FY09 INTERIM DIVIDEND  

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_8D0710F297E99F384825761500141A7D/$file/NOTICE_OF_BOOKS_CLOSURE_18Aug09.pdf?openelement

 

Thats my qn too. Think they are giving scrip or cash dividend. That could be the result?

 

OCBC got div ? Why no remark cd ?