2014 Final dividend distribution

Dear all,

As mentioned on the 21st of May, we received our latest distribution from Credit Suisse (CSGN.VX) based on our actual portfolio.

Our total dividend pay check was 29’817 CHF vs. 32’267 CHF, some people will say that it’s a significant loss, but you will see below that it is the opposite and generated a additional net gain of more than 9’000 CHF.

So how can it be:

If you recall, we made a post related to our 204 estimated distribution on March 2, (Dividends estimation update), where we were expecting a total dividend from UBS of 7’500 CHF, this distribution included the 0.5 CHF per share as normal dividend and 0.25 CHF of special dividend for the shareholders that accepted the change of the UBS business model. To receive this special dividend, you must have the shares at the time of the change until the ex-date.

As UBS made a great 1st quarter announcement and the share took more than 7% in one day, we decided to sell our position to benefit of the generous capital gain of 12’300 CHF, this happened a couple of days before the ex-date and therefore, made us losing the special dividend for our 2014 dividend distribution.

Now you will ask us, and what is the financial impact of this change, refer to table below:

With Capital gain Without Capital gain Net gain Net gain (%)
Share sold 12’230
Normal dividend 5’000 7’500
Total gain 17’230 7’500 9’730 230%

As you can see, we made a net gain of 9’730 CHF or 230% vs. only the expected dividend, and on top we bought the same day 10’100 new shares, which is 100 additional shares compared to our previous position.

Including our bank transaction fees, we have now a selling price of 20.17 CHF. The closing price on Friday 22nd is 20.33 CHF therefore we already start making some gain.

In conclusion, we are very happy with our strategy to maximize gain where and when we can.

What do you think?

Cheers, RA50

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2 thoughts on “2014 Final dividend distribution

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