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 Share dividend - How is it calculated?, need some experienced people to help me

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cherroy
post Dec 18 2007, 10:32 AM

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If ex-date is 19th, then everyone bought at and before 18th will be entitled for the distibution.

It is not dividend. It is the treasuries shares (company buy-back) that company decided to give back to the shareholders.

Actually personally, don't quite like the share buy back, I prefer they use the cash to give generous dividend consistently (as for share buy back, company needs to use the cash to buy back from the market as well). Share buy back is not good to support the share price alone instead if company always giving out generous dividend then investors automatically will look into it and create plenty of buying support due to dividend yield.
Just my personal preference, nothing to do which one is good.

Anyway, just notice its major shareholders are also acquiring more stake from the market. No doubt about this company profitibility issue.
But the 1:25 distribution will create some odd lots in the market.

This post has been edited by cherroy: Dec 18 2007, 10:38 AM
cherroy
post Dec 18 2007, 10:51 AM

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QUOTE(skiddtrader @ Dec 18 2007, 10:42 AM)
Thanks Cheeroy. So does it mean that if I were to buy today, I would still be entitled to get the share distribution? Because at the moment my holdings would only allow me to have a irregular lot size.
Well, to each it's own I guess. To me I would prefer a share 'dividend' compared to a cash dividend mainly because a share dividend is not taxed the 27% a normal dividend is subjected to unless I miss something somewhere. And also a share 'dividend' after distribution increase a holding of an investor whom already hold shares of the company without the need to purchase additional shares + costs. And I think the best time to distribute share 'dividends' is during a bull year, because share 'dividend' wouldn't mean a lot if the share prices are plunging.

Best example I can think of in share 'dividend' is like your Fixed deposit interests which you add into your initial deposit, and the next interest you receive are compounded.
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Yes.

As company uses the cash pile to buy back its shares, it actual term, part of the cash also belonged to you, just company decide to buy its own shares and give you as shares rather than cash.

It makes nothing different actually. As cash pile of company is made from company profit and company profit is taxed already. At simple thinking, nothing much different actually especially next year new dividend system. Old system, one might gain some advantage from the dividend as taxed amount of dividend can be claimed back.
Will look into it more deeper to verify it to see got real different or not. I might be wrong.

As said up to individual preferences and opinion. Nothing right or wrong.

This post has been edited by cherroy: Dec 18 2007, 10:52 AM
cherroy
post Jan 3 2008, 03:55 PM

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QUOTE(TopGunn @ Jan 3 2008, 03:40 PM)
Thanks.
When i can receive the 80 unit shares? didn't mention as dividen payment date.
if i got the 80 unit share. how do trade, selling 2080 odd unit.
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Go to odd lot market, either you sell the 80 shares or buy 20 shares. Your remiser can do it for you.

 

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