Singapore Dividend Cheque in USD

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#1
I recently got a dividend cheque for Jardine Strategic (listed in Singapaore) in USD

Despite a Singapore listing, their default dividend payment currency is in USD.

Now dividends paid in SGD get automatically credited to my account, but that doesn't work for USD.

Jardine Strategic send out a form for you to select how to receive the dividend, but that's NOT a permanent slection, so you have to do this every time there is a dividend.   If you don't receive the form, they send a USD cheque.   Which is highly inconvenient when I live in the UK.

Is there any better way to deal with this ?
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#1
I recently got a dividend cheque for Jardine Strategic (listed in Singapaore) in USD

Despite a Singapore listing, their default dividend payment currency is in USD.

Now dividends paid in SGD get automatically credited to my account, but that doesn't work for USD.

Jardine Strategic send out a form for you to select how to receive the dividend, but that's NOT a permanent slection, so you have to do this every time there is a dividend.   If you don't receive the form, they send a USD cheque.   Which is highly inconvenient when I live in the UK.

Is there any better way to deal with this ?
Reply
#2
Drop the USD cheque to your bank and they will convert and deposit to your SGD account.
IINW, from June 2020, all foreign currency dividends will be automatically converted by CDP and deposited to your SGD account.
Specuvestor: Asset - Business - Structure.
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#2
Drop the USD cheque to your bank and they will convert and deposit to your SGD account.
IINW, from June 2020, all foreign currency dividends will be automatically converted by CDP and deposited to your SGD account.
Specuvestor: Asset - Business - Structure.
Reply
#3
(03-06-2020, 08:37 PM)cyclone Wrote: Drop the USD cheque to your bank and they will convert and deposit to your SGD account.
IINW, from June 2020, all foreign currency dividends will be automatically converted by CDP and deposited to your SGD account.

I live in England, so popping into my OCBC branch isn't easy.

However, thank you for pointing out that from June 2020, all foreign currency dividends will automatically be converted by the CDP and deposited.    
The CDP site confirms this.    https://www.sgx.com/cdp-goes-digital
Better still, Cheque free from September.
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#3
(03-06-2020, 08:37 PM)cyclone Wrote: Drop the USD cheque to your bank and they will convert and deposit to your SGD account.
IINW, from June 2020, all foreign currency dividends will be automatically converted by CDP and deposited to your SGD account.

I live in England, so popping into my OCBC branch isn't easy.

However, thank you for pointing out that from June 2020, all foreign currency dividends will automatically be converted by the CDP and deposited.    
The CDP site confirms this.    https://www.sgx.com/cdp-goes-digital
Better still, Cheque free from September.
Reply
#4
When jardine issued the form for currency selection, they have already spelled out the USD to SGD exchange rate which is quite close to real-time rate at that point in time. But when CDP do the conversion, does anyone knows what the conversion rate will be like? I mean will it be like the banks which will take a cut and give a very lousy rate?
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#4
When jardine issued the form for currency selection, they have already spelled out the USD to SGD exchange rate which is quite close to real-time rate at that point in time. But when CDP do the conversion, does anyone knows what the conversion rate will be like? I mean will it be like the banks which will take a cut and give a very lousy rate?
Reply
#5
(04-06-2020, 07:28 PM)Bibi Wrote: When jardine issued the form for currency selection, they have already spelled out the USD to SGD exchange rate which is quite close to real-time rate at that point in time. But when CDP do the conversion, does anyone knows what the conversion rate will be like? I mean will it be like the banks which will take a cut and give a very lousy rate?

The 3 local banks are quite fair with the exchange rate based on my own experience
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#5
(04-06-2020, 07:28 PM)Bibi Wrote: When jardine issued the form for currency selection, they have already spelled out the USD to SGD exchange rate which is quite close to real-time rate at that point in time. But when CDP do the conversion, does anyone knows what the conversion rate will be like? I mean will it be like the banks which will take a cut and give a very lousy rate?

The 3 local banks are quite fair with the exchange rate based on my own experience
Reply
#6
Currently there is a way to "play" with the exchange on say USD dividend chq if you don't like the rate and if you have a hard time depositing the dividend chq

CDP holds your dividend under your CDP account for 7 years.
So let the chq lapsed if you don't need the money and dislike the exchange rate.
Within 7 years, you can send in a form requesting CDP to TT all outstanding dividends to your bank for a fee of $35.

Not for everyone of course.
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#6
Currently there is a way to "play" with the exchange on say USD dividend chq if you don't like the rate and if you have a hard time depositing the dividend chq

CDP holds your dividend under your CDP account for 7 years.
So let the chq lapsed if you don't need the money and dislike the exchange rate.
Within 7 years, you can send in a form requesting CDP to TT all outstanding dividends to your bank for a fee of $35.

Not for everyone of course.
Reply
#7
I just tried out SGX direct crediting service for my J C&C shares dividend issued in USD. C&C gave at that point in time rate was 1.392. What I got in return from SGX DCS is 1.37+. Bad. Today the rate is 1.388.
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#7
I just tried out SGX direct crediting service for my J C&C shares dividend issued in USD. C&C gave at that point in time rate was 1.392. What I got in return from SGX DCS is 1.37+. Bad. Today the rate is 1.388.
Reply
#8
(21-07-2020, 07:02 PM)Bibi Wrote: I just tried out SGX direct crediting service for my J C&C shares dividend issued in USD. C&C gave at that point in time rate was 1.392. What I got in return from SGX DCS is 1.37+. Bad. Today the rate is 1.388.

I do have similar experience with my JCC shares. It seems like there is a spread of at least 1% to prevailing rates?

If we have a substantial share, might be more worthwhile to mail back the election form next time.
Reply
#8
(21-07-2020, 07:02 PM)Bibi Wrote: I just tried out SGX direct crediting service for my J C&C shares dividend issued in USD. C&C gave at that point in time rate was 1.392. What I got in return from SGX DCS is 1.37+. Bad. Today the rate is 1.388.

I do have similar experience with my JCC shares. It seems like there is a spread of at least 1% to prevailing rates?

If we have a substantial share, might be more worthwhile to mail back the election form next time.
Reply
#9
(21-07-2020, 11:21 PM)weijian Wrote: I do have similar experience with my JCC shares. It seems like there is a spread of at least 1% to prevailing rates?

If we have a substantial share, might be more worthwhile to mail back the election form next time.

I think the spread that HSBC charges CDP for FAST transfer of funds from their account to yours is similar to the spread incurred when you normally deposit USD cheque into your Sing$ bank account. Therefore, it is better to let the company that is declaring dividend to do the conversion at their side rather than using CDP DCS. Also, there is a slight delay in the arrival of funds if you are using CDP DCS as they need to FAST transfer those dividend into your bank account.

Having said that, I think JCC and other Jardine group of companies, Elect & Eleck etc are unique cases whereby they pay US$ dividend as default choice. Normally, companies with overseas operations listed on SGX will declare Sing$ dividend or they convert automatically for shareholders into Sing$ at their side, unless you stated otherwise.
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#9
(21-07-2020, 11:21 PM)weijian Wrote: I do have similar experience with my JCC shares. It seems like there is a spread of at least 1% to prevailing rates?

If we have a substantial share, might be more worthwhile to mail back the election form next time.

I think the spread that HSBC charges CDP for FAST transfer of funds from their account to yours is similar to the spread incurred when you normally deposit USD cheque into your Sing$ bank account. Therefore, it is better to let the company that is declaring dividend to do the conversion at their side rather than using CDP DCS. Also, there is a slight delay in the arrival of funds if you are using CDP DCS as they need to FAST transfer those dividend into your bank account.

Having said that, I think JCC and other Jardine group of companies, Elect & Eleck etc are unique cases whereby they pay US$ dividend as default choice. Normally, companies with overseas operations listed on SGX will declare Sing$ dividend or they convert automatically for shareholders into Sing$ at their side, unless you stated otherwise.
Reply
#10
Thanks ghchua for more details. CDP DCS just came into service at the start of this month and we do get a "first taste" of the results. It feels a little bit like exchanging currency at the money changer located in Changi Airport, rather than doing it at The Arcade Raffles Place
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#10
Thanks ghchua for more details. CDP DCS just came into service at the start of this month and we do get a "first taste" of the results. It feels a little bit like exchanging currency at the money changer located in Changi Airport, rather than doing it at The Arcade Raffles Place
Reply


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