What happens if I do not instruct on a DVOP event?

You receive the default option, the one flagged with :17B::DFLT//Y in the MT564. It is usually cash, but some issuers make shares the default, so always check.

Is a UK or Australian scrip dividend a DVOP?

Usually yes: a scrip dividend where holders can take new shares instead of cash is a dividend option. If the cash is used to buy existing shares in the market, the event is DRIP. Always check the account servicer’s announcement.

Can I take part of my dividend in cash and part in shares?

Usually yes. Send separate instructions for the cash and share quantities, as long as the issuer allows split elections.

Corporate action events

DVOP: Dividend Option

Written and maintained by ZagTrader. Last reviewed 21 October 2026. How this page is sourced and checked

DVOP is a dividend with a choice: holders can take the dividend in cash or in new shares issued by the company. It is a mandatory event with options, so holders who do not instruct receive the default option.

Code: DVOP
Usually announced as: CHOS

What DVOP means

Some companies let shareholders take their dividend in shares instead of cash, often called a scrip dividend or stock dividend option in the press. The company issues new shares to those who choose them, keeping the cash in the business. The number of shares is set by a ratio or by a reference price announced before or during the election period.

Entitlement is decided on the record date as for any dividend. Each holder then chooses, for all or part of the holding, between cash and shares. Holders who say nothing get the default option, usually cash. Fractions of shares are normally paid in cash or carried forward.

When you see it

An MT564 with :22F::CAEV//DVOP and :22F::CAMV//CHOS, two options CASH and SECU, one flagged with :17B::DFLT//Y, the gross dividend rate, the share ratio or reference price, the ex date, record date, election deadline and payment dates. The SMPG grid lists DVOP only with CHOS. In markets that run it as two events, the first is an intermediate securities distribution (RHDI with :22F::RHDI//DVOP).
DVOP vs DRIP: DVOP creates new shares; DRIP buys existing shares in the market. DVOP vs DVCA: DVCA pays only cash. DVOP vs DVSE: DVSE pays only shares, without a cash alternative.

What to do next

Collect elections and instruct with an MT565 before the response deadline, stating the option (SECU or CASH) and the quantity. Split instructions are possible when different clients choose differently within one account.
When the MT566 confirmations arrive, reconcile the cash leg (gross, tax, net) and the share leg (new shares at the ratio, cash for fractions) separately. Check whether the share option is taxed as a dividend in the client’s country and set the book cost of the new shares accordingly.

Where it appears in MT and ISO 20022

MT (ISO 15022)

MT564 sequence A (GENL): :22F::CAEV//DVOP, with :22F::CAMV//CHOS; options :22F::CAOP//CASH and //SECU, default flag :17B::DFLT//Y.
MT565, MT566, MT567 and MT568 sequence A: :22F::CAEV//DVOP.

MX (ISO 20022)

seev.031 CorpActnGnlInf/EvtTp/Cd = DVOP, with CorpActnGnlInf/MndtryVlntryEvtTp/Cd = CHOS; options in CorpActnOptnDtls/OptnTp/Cd, default in CorpActnOptnDtls/DfltPrcgOrStgInstr/DfltOptnInd.
The same event type element is used in seev.033 (instruction) and seev.036 (movement confirmation).

Questions

What happens if I do not instruct on a DVOP event?: You receive the default option, the one flagged with :17B::DFLT//Y in the MT564. It is usually cash, but some issuers make shares the default, so always check.
Is a UK or Australian scrip dividend a DVOP?: Usually yes: a scrip dividend where holders can take new shares instead of cash is a dividend option. If the cash is used to buy existing shares in the market, the event is DRIP. Always check the account servicer’s announcement.
Can I take part of my dividend in cash and part in shares?: Usually yes. Send separate instructions for the cash and share quantities, as long as the issuer allows split elections.