Wednesday, May 21, 2014

NWS - top up

With there being a meaningful difference between the market price (above $13 at the time I had to make a decision) and the reinvestment price ($12.3918), I elected to reinvest my dividend in NWS (HK:659). At this morning's opening price of $13.94 the unrealised gain is $1.54 per new share or 12.4%.

In generally, I like taking dividends in scrip on companies that I anticipate holding for the longer term. Unfortunately, many (but not all) of the companies I invest in in Australia and New Zealand will not allow non-residents to participate in their dividend reinvestment plans - meaning I lose the opportunity to buy shares at a discount to market and I am getting diluted.

Of course, the other issue I face now that I am no longer earning employment related income is  that I need cash to pay the bills.

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