Yesterday was one lousy trading day on Bursa KL. One share that shone through was Berjaya Sports Toto(BST).It announced that it was giving 30 sen dividend as well as a share distribution from its Treasury shares on the ratio of one share for every 14 shares held.
Taking off from the share value of your holding calculated at RM1,629.13 (Look at an earlier posting), this means a further reduction of RM300 for dividend, bringing the actual cost outlay to RM1,329.13.
Let us now factor in the price of the distribution in specie of one share for every 14 shares held.
Yesterday, the share value was RM5.25 per share. As you have 1000 shares, you will be allotted 71 shares. This will be valued at RM375. If you minus this amount as well, that would mean your actual investment on your 1000 shares is only RM954.
With this calculation, you are deemed to have bought the shares at almost par and it will be easier for you from now on to compare dividend returns versus interest payments from banks on a RM1000 basis.
BST is a great share.
It should be in everyone's portfolio holding.
Agree?
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