Can someone help with Divy senarios?
I think this question has been asked in the past and there were some nice discussions about this topic but I was hoping that some of the longs out there could go over this subject again. Lets start with an assumption first.
Bihc gives each shareholder a 14 cent divy and sells the Barrons for 25cents a share. The divy will be paid out Dec 21.
My question is, what number do you haveto sell your shares for in order for the divy not to matter. Now obviously, if you sell for 50 cents, 1 dollar, 2 bucks, etc, then you sell of course, but lets use numbers closer to the divy. If my divy is for 14 cents after you take into consideration that you will be 15percent on taxes as opposed to 30 percent on selling your shares outright there has to be a number that you sell your shares for, for the divy not to matter. I hope this makes sense, because i know I can ramble, but hopefully there is someone out there that knows where im going with this. Thanks.
