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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?
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?