Hi all, with DBS announcing its Scrip Dividend Scheme. What should I do?

I will choose to get cash if I am holding very little stocks as the odd lots will be really be not worth to sell (after taking into consideration trading fees). Unless I hold that many stocks such that by scrip dividends are in lots of 100, I may consider getting stocks, else I will prefer to get cash as there is no discount like Singtel if you were to get stocks. With cash, I have the freedom to do what I want with it (invest in crypto etc)

While the scrip dividend is issued at no discount( maybe even a slight premium) of $28.77 / share,

unless you own a lot of units, the effect of rounding can be quite significant.

Let's run through some calculations,

Scenario 1: 100 shares

scrip:

$18 / 28.77 ~ 0.63 shares == rounded to 1 share (worth $28 at current market price)

cash:

$18

Take scrip as you get $28 worth of shares.

Scenario 2: 1000 Shares

scrip:

$180 / 28.77 6.3 shares == rounded to 6 shares (worth $170 at current market price)

cash:

$180

More worth it to take cash as your shares get rounded down + scrip dividend is issued at a premium to market.

Scenario 3: 1100 Shares

scrip:

$198 / 28.77 6.89 shares === rounded to 7 shares (worth $200 at current market price)

cash:

$198

More worth it to take scrip as you get ~$200 of shares.

The basic principle is if you get "rounded up" collecting scrip dividend shares, you might come out ahead, even if the scrip dividends are issued at a premium to current market price.

Surely this is a matter mathematics first:

The scrip is not issued at a discount so your dividend is paying full price. With the script being issued at SGD21.04 and current share price for the last week being mostly well under this value, it would be better to take the cash.
If you want to invest it in DBS shares you need to check if the differential in share price covers your specific broker charges.. (If I take av DBS price over last week, differential to 21.04 would pay for my allowance/broker so even if I reinvest I get more by taking the cash.

I also align with others that there is better performing stock out there at this time than banks which are likey to have a few hard years.. with low interest and defaults.

Go for scrips because in the long run(2023-2028) , when the economic situation gets better, the price of DBS shares should be higher. DBS is also investing a lot of efforts into sustainability and prides itself as a "high-tech" bank so we should see better dividend payout when the sky is clearer!