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Can someone enlighten me about the latest dividend payout (ex-date 28 May)?
1. On closing of 27 May - RM8.33
2. Then the next morning it reflected that closing of 27 May is RM7.94, which is RM8.33 - RM0.385.
In that case, shareholder is not gaining anything (ignore the fact that share price goes up after that)? Since net is still RM8.33 per share (Stock price opening RM7.94 + RM0.385 to be paid later). It is sort like share split instead of dividend payout?
You have to see long term. Imagine you bought Maybank share in 1998, share price rm4.. you hold till now. Minimum you would have received cash dividend of 200-400% during your entire holding period and hefty paper gain of 100%.
Yes, dividend will deduct share price on ex date but good company will keep generate value and higher cash, market will reflect too.
Hi Siew Chin, yes I agree with all you have mentioned. What I don't get it is can this be considered as dividend? Since MBB doesn't really give out real money, instead share is diluted, more like stock split from what I am seeing. This actually would impact EPS (put aside future growth and business first). Consider the following scenarios:
Scenario 1
Company A stock price is RM0.50. Decided to give dividend of RM0.10 per share. You hold 1000 shares before ex-date. After divided payout you reinvest all the dividend to buy back the stock (assume price remain the same). In this case you own 1200 share at RM0.50, total holding is RM600.
Scenario 2
Company B stock price is RM0.50. Decided to give dividend of RM0.10 per share with DRP (like what MBB is doing, with share dilution). You hold 1000 shares before ex-date. After divided payout and you opt for full DRP. Now you hold 1250 shares at RM0.40 per share (assume stock price doesn't change after ex-date, only price dilution). Total holding is RM500.
In these cases, which looks like more like real dividend and share split?
u can think like money split,not share split. u sendiri took out that rm 0.385 from your own maybank stock and put in your pocket. so the remain will be 7.94. so basically meaning of dividend is money withdraw
thats why some ppl said dividend is bonus, but what i think it should be what we deserved. But investing long term is obviously better than putting in bank, so most ppl invest in blue chip and get the dividend, at the same time they earn the growth too.
