Special divi - better off or not?18 Aug 2022 13:52
I am still a bit confused regarding the upcoming special dividend.
Any help answering the following would be appreciated:
1) Is the special divi simply a forced stealth buy-back from NWG? --> Am I losing 1/14 of my total shares, but getting their value back in £?
2) Once the consolidation happens, is it reasonable to assume the share price will increase by 1/14 of it's value to account for the loss in number of shares? Or is that value loss accounted for by the special divi?
3) Does the special divi apply to the number of shares I own before or after the consolidation?
When it was first announced I was quite excited at getting such a large divi, but now it seems like a pretty mediocre deal.
Please correct me if I'm wrong. Thanks.