RE: Special Dividend17 Mar 2022 10:19
CONFUSED ON THE POSSIBLE OUTCOME, where is the bonus to shareholders?
Aviva give £1 per B share
Firstly is the current £4+ share at that price because the company are doing well, or is it because of the £1 dividend?
So assuming I have 4 shares at £4 each
They give me £1 per share from the company profits = £4 profit
Then they take away a £4 share and give 3 shares in its place, do we assume it’s the same price share value of £4 given people have the valid opinion the share price goes down after such a big “Dividend from the company coffers”
therefore a loss of a single share of £4 and status quo in capital and shares totals of £16 except for the possible increases in dividend spread across less shares in the future?
Appreciate the wisdom of holding a higher % of the company if the payment of the special dividend didn’t effect the value of the company going forward.
The other issue is they are buying the single consolidation share at a knock down price of £4 when some of us have bought in at £420 on some shares, and the future dividend is being supported by the 4th share dividend removal, ie 4*22p now becomes new shares 3 * 31p, no real gain in first 2 years!
Only way IMO of a gain is if the shares rise to £5.33 and the £1 B share becomes a true profit on capital
How DO I WIN? in the first stage as I now run the risk of a tax bill on the volumes of £1 per shares for a value of shares in this instance £16, possibly ending down to £12 of shares (and £4 of Dividend) that I already owned.
If this seems confused it’s probably because it’s because I’m a first timer!