RE: Why do companies pay special dividends?5 Sep 2021 08:38
Good morning RailwayPete and all
Thanks to Oldspursfan for his confirmation of my post, and apologies to CAW1 for not quite seeing what he was trying to say as I was cooking at the same time:-)
On re-reading your post you seem to think the RNS wording implies that the company can issue a dividend with a very short time scale to stop any buying of the stock to benefit from the future dividend payout!
As in purchase EUA stock now, or miss out on a future dividend!
I get your point, and we guess the company hates shorters, but why would the company try to do that in implementing an in the past date, that would need to be voted through in the present, and not how things normally happen.
I'm sure the company just want to reward all investors, long term, and short term, as that will help to keep the share price very buoyant through last-minute trading to grab the attached dividend.
Also, the idea of the company issuing a dividend to each and every shareholder would not be to just trap holders to only receiving a dividend, they would know all EUA investors have very differing TAX implications!
Take Anders_Uk for example, the poor chap holds many Millions of shares outside of an ISA, it was very difficult two years ago to plan for every eventuality that MAY pan out in the future!
Two years ago we all thought we would be receiving CASH, as in the company would just add any sale value to the company coffers, and we would be rewarded by a higher share price, which we could sell at will, and NOT a divided :-)
Things have changed, and for the better, the company would not do anything to upset the long term investors, they needed and appreciated their continued support, and now want to repay that devotion!
This company is not your normal AIM feeding trough for the BOD!
This one is the exception :-)
I think this will follow the normal route of as SteSteJ has posted, offer, vote, ex-div date!
Makes the most sense to me.
Roll on Monday :-)
GLA