Hi Trading 212
I have received reports that Santander shareholder will be receiving free shares in December as the company has announced that there will be scrip dividend for 2020.
Please can you advise how this will effect individuals who currently hold Santander shares.
Will we be receiving an email later in trading 212 showing that we will receive additional shares?
Also who is this eligible to, is this for existing shareholder who have held the shares for up to which date,
Hi @Chris,
Telefonica also offered a scrip dividend, and the way it worked is that T212 sold the shares and credited us the monetary value. Divided payments are usually paid around 7 to 10 days later.
I imagine that the process will be the same with Santander, so, you wont get the share, but you will get the money, which you can then choose to buy the share if you want to 
.
The reason being that T212 can currently only offer cash dividends. It is not ideal, but it worked quite well last time 
(except for the fact that it takes a few days).
At least, this was the situation a few weeks/months ago when Telefonica paid its scrip dividend. Someone from the T212 team please correct me if anything I say is incorrect or anything has changed.
Hi trading212
I still haven’t received my script shares.
Please can you check and provide an a
Update
Thanks
Hello @Bogi.H
LMP’s Dividend is today, but their RNS also mentioned a Scrip dividend.
How will this be done with T212 as I read you guys pay it in cash but is this included in the dividend or will the scrip cash come later?
Many thanks
Hi, @Venetia1993, a SCRIP dividend typically allows you to choose between receiving the dividend in cash or in additional shares. With SCRIP dividends, we use the default option set for the event - in this case, that’s cash. The dividend will be paid today, and it’s a single dividend
Hello again.
When I calculated the Dividend. I got ÂŁ15.25 based on the shares I obtained. (500 shares @ 3.05 pence per share).
Is this correct as I cannot determine how much of the scrip I should recieve?
Kind regards
@Bogi.H Could you let me know the situation as per the above reply if you could?
Kind regards
That’s correct. The gross dividend per share is 3.05 GBX, so your calculation is accurate: 500 × 3.05 = 1,525 GBX, or £15.25. Additional details can be found by selecting the dividend payment in the History tab.
Hello again.
Is the scrip dividend not being paid in cash?
I wanted to know if the LMP scrip will be paid to T212 shareholders?
Kind regards
A SCRIP dividend offers a choice between cash and shares. With SCRIP dividends, we apply the default option, which in this case is cash. There is only one dividend payment, and that’s the one you confirmed.
Hello again.
The RNS mentioned this:
“The Company confirms that, in accordance with the terms of the scrip dividend scheme (“Scheme”), 975,864 ordinary shares of 10 pence each in the Company (“Shares”) are to be issued in relation to the Dividend”
Shouldn’t there be the dividend plus the scrip dividend in cash because they affectively diluted the shares, even if it is a small amount?
Kind regards
Hi, @Venetia1993. Let me shed more light on that:
Those extra 975,864 ordinary shares aren’t free. They were funded by dividends not paid out in cash to shareholders who elected the stock option.
Issuing scrip shares increases the share count, but the company retains the cash it would’ve otherwise paid out.
Ah I see.
Thanks for clarifying.
Kind regards