RE: Scrip divided4 Oct 2021 18:59
Medium-term holder here, first post. I hold HMSO, as I hope for and expect the discount to NAV to narrow over the coming months, as Covid becomes endemic, tourism picks back up and the suspension of tenant eviction ends. Also hope the NAV itself might rise for same reasons.
What I don't understand is why the scrip div is anything to be happy about. Doesn't it simply dilute the value per share? There's maybe a small advantage for those of us who can take the scrip divi over those who can't, but that aside, are we simply hoping the market doesn't realise that logically the share price should fall in proportion to the number of new shares created? Or am I missing something?