As proposed and accepted during the Shareholder meeting of Credit Suisse (CSGN.VX), we received today the letter asking us to choose between dividend in cash (0.7CHF/share, which are not taxed as it’s a capital distribution) or received X shares (at zero cost).
The # of new shares will be determined based on our position and the value that will be calculated as the average of 5 days closing value.
Based on my rough estimation, we should receive between 165-195 new shares.
Now what is the financial impact of these new shares:
- it will reduced our purchase value by +/- 1.20 CHF or +/- 5%;
- it will increase our 2016 dividend by +/- 120 CHF (considering 2015 distribution).
Now if we decide to take the dividend distribution of 0.7CHF, what is the financial impact:
- it will give us a net cash gain of 3220 CHF,
- Using our average dividend yield obtained in 2015, it will give less than 100 CHF in yield.
- we can decide to invest this money at any time.
At first and before making this simulation, we would have taken the cash, but now, we realized that it’s probably better to take the new shares.
And you, what would you do if you were us?
In waiting your feedback, accept our best regards,