After waited for more than 2 weeks since XD date, have received the letter of notice for my scrip dividends from OCBC today. Finally.
What is scrip dividend?
Investopedia: A stock dividend is a dividend payment made in the form of additional shares, rather than a cash payout.
穷小子: Basically is payment to you by shares instead of cash for dividends.
From what I know, the local 3 pillar banks (DBS, OCBC, UOB) stocks give their shareholders an option to choose between payment by shares or cash for each round of dividends payment. No, scrip dividend is not a mandatory for every year, it is a decision by the management and is one of the resolutions which the shareholders had to vote during the Annual General Meeting. In short, we wouldn't know whether the company would still have scrip dividend for next year until the next AGM.
How is the ......