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N4longterm

03/07/17 11:23 PM

#2182 RE: novicetrader #2181

This divy won't be effected, as it will be paid prior to the vote. But my guess would be future amounts may be reduced. Normally they would adjust the divy to match the proposed RS, and the total payout would be the same. One option would be for them to adjust the divy partially, that way they could save some cash while still having a decent yield.

IE:

RS @ 1:10 = new share price $27.00
Adjust divy @ 1:5 = new divy $.525
New yield = 7.8% compared to old yield @ 15.6%

This example would save them 50% cash and still be an attractive yield.



fung_derf

03/08/17 11:09 AM

#2184 RE: novicetrader #2181

No. The dividend will adjust along with the shares themselves.
So, in the case of a 1 for 10 reverse split, if you had 100 shares paying .105 per quarter; you would now have 10 shares paying $1.05 per quarter.