Can anyone tell me how does share dividends work?

Recently YTLPOWR announced a share dividend of 1 treasury share for every 25 existing shares.

"Distribution of One (1) treasury shares for every Twenty-Five (25) existing ordinary shares of RM0.50 each held in the Company ("Share Dividend") . "

"LISTING'S CIRCULAR NO. L/Q : 47224 OF 2007

Distribution of One (1) treasury shares for every Twenty-Five (25) existing ordinary shares of RM0.50 each held in the Company ("Share Dividend") .

Kindly be advised of the following :

1) The above Company's securities will be traded and quoted [ "Ex - Dividend"] as from : [ 19 December 2007 ]
2) The last date of lodgement : [ 24 December 2007 ]
MANAGER, SEC. MARKET "

Is it too late to buy more share to be entitled to this? Since 19th Dec is tomorrow, I assume anyone currently having the shares in their CDS would be accounted for on the 19th. And share distribution would only happen on the 24th. Is this right? Or does it mean that from 19th until the 24th, anyone who bought shares during that period are entitled to the share dividend.

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.

Thanks Cheeroy.