Dividend as shares
The dividend as shares corporate action can be used as a tool for recording dividends as shares to your portfolios.
Dividend as shares is handled so that the dividend paid per security is converted into dividend securities based on the purchase price of the dividend security. If the amount of the dividend security received is not a whole number after the conversion, the remainder is paid as a regular dividend.
For example, there are 100 securities A in a portfolio, and a dividend of 0,50 € is paid per share A. The value of the dividend is thereafter 100 * 0,50 € = 50 €. If the dividend is paid as shares of security B, and the unit purchase price of B is 3 €, 16 B shares are paid as dividend as shares, and 16 * 3 € = 48 € (since 50 / 3 =16,67). The dividend paid as shares is not a whole number of shares, and the rest of the dividend, 50 € - 48 € = 2 €, is paid as regular dividend.
The dividend as shares corporate action can be recorded to the system through the Corporate action window with the following information (a star indicates a mandatory field):
- Security*
The security the dividend is paid for. The amount of this security in the portfolio will determine the amount of the dividend transaction created.
- Dividend security
The security that is paid as the dividend.
- Unit price per share*
The unit price per share of the dividend security (the unit price of the security paid as the dividend).
- Dividend per share*
The dividend paid per share.
- Annual meeting date
The annual meeting date.
- Run based on*
An option to run a corporate action based on:
Ex-date. Define the ex-date and run the corporate action for all portfolio positions (settled and unsettled) that have a transaction date on the previous day or earlier.
Record date. Define the record date and run the corporate action for settled portfolio positions that have a settlement date on the previous day or earlier.
- Dividend ex-date*
(The field is shown if you choose to run the corporate action based on the ex-date). The dividend ex-date. The dividend is calculated based on the position amount in portfolios (settled and unsettled) on the morning of the dividend ex-date (i.e. the position after the previous day's transactions). This date will become the purchase date of the security received as the dividend and the transaction date of the transactions created.
- Dividend record date*
(The field is shown if you choose to run the corporate action based on the record date). The dividend record date. The dividend is calculated based on the settled position amount on the morning of the record date. This date will become the transaction date of the transaction created.
- Settlement date
The settlement date of the dividend, i.e. when the dividend is actually paid to the portfolio.
- Transaction type*
The transaction type for the dividend transactions ("Dividend" or similar).
- Transaction type 2*
The transaction type for the transactions related to the new securities acquired as the dividend ("Dividend as shares" or similar).
A new corporate action is created with the OK button below the corporate action information. Remember to run the corporate action to your portfolio(s) in order to create appropriate transactions for your portfolios.