Stock Dividends

Tp101s

Tp101s

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Why some SGX shares payout dividends in cash but other send out paper asking investors to choose receiving dividend in cash or units?
 
BBCWatcher

BBCWatcher

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Tp101s said:
Why some SGX shares payout dividends in cash but other send out paper asking investors to choose receiving dividend in cash or units?
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Because the managers of the company have that choice, and then shareholders may have a choice (if company managers offer it). Hopefully these managers are making such decisions based on the long-term interests of shareholders.
 
reddevil0728

reddevil0728

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Tp101s said:
Why some SGX shares payout dividends in cash but other send out paper asking investors to choose receiving dividend in cash or units?
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They ask you whether you want to reinvest your dividends lor
 
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Andrew833

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Tp101s said:
Why some SGX shares payout dividends in cash but other send out paper asking investors to choose receiving dividend in cash or units?
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Most stocks give dividend in cash. Few stocks have Dividend Reinvestment Plan (DRIP), allow you to choose to reinvest into share or partly share and cash or cash only.
 
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articsnipershot

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one reason for companies could be to preserve its cash (that otherwise will be distributed) for working capital purposes
 
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