DrMoriarty
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A rather naïve question for youse experts, indirectly related to a point raised by an earlier post of Brendan's:
Urgent: CRH shareholders should cancel their scrip mandate
...and leaving aside discussion of the actual share price, natch.
A friend of mine holds a few shares in United Drug (through a nominee a/c with Fexco) and until now has been reinvesting her dividends through their Scrip Dividend Reinvestment Plan. She has just received a communication requiring her to decide — within the next week — whether she wants to receive her next dividend in cash (at €0.0577 per share) or to re-invest it in new shares "at a ratio of 1 for 41.247833".
My vague understanding of these matters is that, for the purposes of DRIP plans, share values are usually calculated at something like the average price over the six months previous to the dividend calculation, but I was unable to explain to her what the above reference to a "ratio of 1 for 41.247833" meant. Can anyone enlighten me? The letter from Fexco doesn't mention a share price.
My instinct was to advise her to cancel the mandate, but I'd like to be able to say why...
Urgent: CRH shareholders should cancel their scrip mandate
...and leaving aside discussion of the actual share price, natch.
A friend of mine holds a few shares in United Drug (through a nominee a/c with Fexco) and until now has been reinvesting her dividends through their Scrip Dividend Reinvestment Plan. She has just received a communication requiring her to decide — within the next week — whether she wants to receive her next dividend in cash (at €0.0577 per share) or to re-invest it in new shares "at a ratio of 1 for 41.247833".
My vague understanding of these matters is that, for the purposes of DRIP plans, share values are usually calculated at something like the average price over the six months previous to the dividend calculation, but I was unable to explain to her what the above reference to a "ratio of 1 for 41.247833" meant. Can anyone enlighten me? The letter from Fexco doesn't mention a share price.
My instinct was to advise her to cancel the mandate, but I'd like to be able to say why...