Keppel Ltd (SGX: BN4) – how much do you make from the 1-for-9 Scrip Dividend + dividend
Keppel Ltd (SGX: BN4) recently announced a mandatory Dividend / Distribution paid in Scrip with the following entitlement:
- 1 new security for every 9 existing Keppel shares held
- Ex-Date: 27 April 2026
- Payment Date: 8 May 2026
- Event Type: DVSC (Dividend paid in Scrip)
This means investors holding Keppel shares before the ex-date will automatically receive additional shares without needing to make any election.
What Happened Before the Ex-Date?
On 23 April 2026, Keppel released its 1Q 2026 Business Update, which triggered significant investor attention.
Although net profit came in slightly lower year-on-year due to weaker Real Estate contributions, the company showed strong positives in several key areas:
- Strong free cash inflow versus prior year outflow
- Asset monetisation transactions worth $385 million YTD
- Target to monetise $2–3 billion of non-core assets in 2026
- 13% YoY growth in asset management fees
- Over $700 million of new long-term infrastructure contracts secured
- Continued expansion in data centres, AI infrastructure and digital connectivity
However, despite the positive long-term outlook, the market reacted negatively in the short term.
Keppel’s share price dropped sharply from its 22 April 2026 close of $12.03 to an intraday low of $11.53 after the business update was released on 23 April.
This created an interesting opportunity for investors who bought near the dip before the ex-date.
Example: Investor Bought 10,000 Shares at $11.55 on Friday, 24 April 2026
Step 1: Initial Investment
10,000 shares × $11.55 = $115,500.00
Step 2: Scrip Dividend Entitlement
Because of the 1-for-9 scrip dividend:
Bonus shares received:
10,000 ÷ 9 = 1,111 new shares (rounded down)
Total shares after ex-date:
10,000 + 1,111 = 11,111 shares
Step 3: If Market Opens at $11.27
11,111 shares × $11.27 = $125,220.97
Step 4: Profit Calculation
Profit = $125,220.97 − $115,500.00 = $9,720.97 profit
That is approximately:
- 8.42% gain
- 97 cents profit per original share
Even though Keppel’s theoretical adjusted ex-price was around $10.40, the actual market opening at $11.27 allowed investors who bought before the ex-date to benefit significantly from both the mandatory scrip dividend and the market’s stronger-than-expected pricing.
Disclaimer
This article is for educational and informational purposes only and should not be considered financial advice, investment advice, or a recommendation to buy or sell any securities.
Corporate actions, dividend adjustments, and market prices may vary based on official SGX announcements and actual market conditions. Investors should always perform their own due diligence and consult a licensed financial adviser before making any investment decisions.
Past performance does not guarantee future results. Investing in securities involves risk, including the possible loss of principal.
