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vpagano

02/17/13 5:30 PM

#17 RE: Enterprising Investor #16

All valid points.

I guess the traditional appeal of a stock dividend as I've been taught is choice. Ex-dividend the stock will trade lower be it stock or cash, but in this case the investor isn't simply receiving cash but has the option of selling their additional shares at a future time when enterprise value may be higher.

Otherwise the investor needs to buy additional shares with their cash dividend and a DRIP program locks you into those at set prices.

Now you got me hungry EI, time to order a large supreme haha.