Gross cash alternative, exact and whole scrip shares, residual value, post-event holding and indicative market value.
A free Alpha Investors tool
Scrip Dividend Calculator
Compare the gross cash dividend with the whole shares and fractional balance produced by a reference-price scrip scheme, including an issuer allocation factor where source withholding applies.
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Eligible record-date shares, cash dividend, issuer allocation percentage, published reference price and any prior carried balance.
Your tax treatment, scheme eligibility, fractional policy or whether more exposure belongs in the portfolio.
01
Reference-price schemesScrip terms
02
Before taxCash versus shares
- Gross cash dividend
- £300.00
- Dividend value applied to scrip
- £300.00
- Value available for scrip election
- £300.00
- Theoretical scrip shares (truncated display)
- 46.153846
- Whole scrip shares
- 46
- Fractional balance paid as cash
- £1.00
- New holding
- 1,046
- Holding increase
- 4.60%
- Indicative market value of scrip package
- £313.80
- Market value versus value applied
- £13.80
- Reference-price discount / (premium)
- 4.41%
This models a full-holding, reference-price scrip election. A carried-in balance is included only when you enter it, and carried output is shown at nominal value rather than as cash received now. Use the issuer's allocation percentage where source withholding reduces the amount applied. Ratio-only schemes, actual entitlement dates, reference-price windows and fractional policies remain scheme-specific. It is not a DRIP calculation and excludes tax, dealing costs, FX and wrapper treatment.
The decision after the calculation
Cash and shares can begin with the same entitlement and end with different portfolio risk.
The election produces 46 whole shares and a residual of £1.00. The harder question is whether retaining more exposure fits your income needs, concentration and tax position.
Do you need income or more exposure?Is the reference price favourable?What do the scheme and tax rules actually say?
How it works
Use the scheme figures, not a live-price approximation.
- Enter the eligible shares held at the scheme's record date. Calculate separately registered accounts independently because whole-share rounding can differ.
- Use the published scrip reference or calculation price, often based on a multi-day average.
- Choose the fractional treatment stated for your account or settlement system.
- Use the current market price only for an indicative valuation of the resulting package.
Scrip-dividend mechanics
The reference price sets the allotment. It does not guarantee the value.
The calculator divides the dividend value available for election by the published reference price, rounds down to whole shares and identifies the balance left under the selected scheme treatment.
Cash alternative
The gross cash dividend is the eligible holding multiplied by the cash dividend per share. It is shown before tax, withholding or other scheme adjustments.
Whole-share rounding
Scrip schemes generally allot whole shares by rounding the theoretical entitlement down. The remaining amount follows the issuer's terms rather than a universal rule.
Carried is not paid
A carried residual remains attached to the relevant registered holding or account. It should not be described as cash received today and may not earn interest.
Reference price versus market price
The reference price is an allocation input, often calculated over several days. The market price may move before the shares are issued or can be sold.
Scrip is not DRIP
A genuine scrip election normally issues new shares in place of cash. A dividend reinvestment plan reinvests a cash dividend to acquire shares, often through a market purchase, and may involve dealing costs and stamp taxes.
Tax still matters
Taking shares does not automatically make the dividend tax-free. Treatment depends on the issuer, distribution, wrapper, residence and personal circumstances.
Scheme terms control. Actual allotment, withholding, overseas eligibility, settlement-system treatment and fractions follow the issuer and registrar documentation. HMRC distinguishes optional stock dividends from market-purchase DRIPs; see SAIM5150 and STSM078030. Use the issuer's tax statement and professional advice where relevant.
From election to allocation
Receiving more shares is still an active portfolio decision.
Alpha connects the dividend choice to income needs, concentration, valuation, tax awareness and what else the capital could do.