Dividends or Rights?

[BG]

Question lang po mga sirs and maams.

Which would you prefer Dividends or Rights?
And How do you weight if it which is better?
Is there a certain calculation or something?

Thanks sa lahat ng tutulong!

[KuyaDanny]

Cash dividends are the best. At the end of the day, cash is what we want to have in our pockets. However, if you are an individual, cash dividends are subject to 10% tax.

Stock dividends are probably next in line. They also represent a share in the profits, which you can convert to cash. The problem is that you have to sell the shares to convert them to cash.

Stock rights are often sold at a discount from the prevailing market price. The discount represents "instant profits". However, you have to pay for the subscription (cash out) so you can get your shares, which you then need to sell to get back your cash.

[BG]

checking lang po kung tama pagkakaintindi ko..

if i get cash divs - pagclaim ko 10% tax?
if i get shares - pagbinenta ko may mga taxs, etc pa un dba?
so parang pareho lang po right or slightly higher lang *** kaltas ng tax kasi nga hard cash nga naman.

pati follow-up question.

let's say nag COL ako and i get to have cash divs, automatic na po un macredit saken or may gagawin pa ako to claim it etc etc?
Curious lang kung pwedeng...kumbaga forget about it and let it sit there parang "bank" hehe..

[KuyaDanny]

If you get cash dividends, 10% will be withheld from the amount and your account will be credited 90% of the amount.

If you get shares (as dividends or from rights), you will pay a transaction/sales tax when you sell the shares. Since they will be treated the same way as regular shares when you sell them, you'll also pay commission and other charges associated with selling shares.

The cash dividends you receive will remain in your COL account as cash until you withdraw or use it to buy more stock. I don't know if COL pays interest on cash balances, but my regular brokers certainly do (usually same as bank deposit rates).

[BG]

wow..cool ah convenient to a point..hehe...thanks so much sir.

it sounds like parang ang sarap ilagay lahat ng pera sa stocks...hahaha...kiddin.

[noics02b]

I'd say mahirap ang dividend plays, because prices adjust quickly during Ex-dates. For me, Cash/Stock Dividends and Stock Rights are great if you are investing for the long term.

[BG]

Thanks sir, I do not plan to play on them, pang long-term din iniisip ko.

[BG]

Uhmm..may follow up question lang po ako about sa dividends and rights.

napancin ko, while checking mga stocks sa pse yung iba marami silang nilalabas na dividends info, like for example ALI mga nakaka 3 na ata sila for this year, pero yung SMPH isa palang.

Question:
Sa nilalabas ng PSE - yearly listing ba at di na makikita yung mga past years na naglabas sila ng dv/rig?

alam ko na di pwede ilabas yung mga sched na ganyan kasi lahat ng tao mag ex-date etc and stuff pero, kung kasali ka sa stock nila do you get earlier notice about it kung kelan mag ex-date?

Thanks po!

[KuyaDanny]

PSE website only displays only the current year's dividend and rights notices. If you want older information, go to their library.

As a stockholder, you will not get any earlier notices than what is available to the rest of the world. One exception might be if you are also a director of the company, and you were present at the meeting when the dividends were declared.

[BG]

So hindi din po ganun ka sure na merong dividends for that year?

parang ganun?

[KuyaDanny]

I am afraid I don't understand your question.

[noics02b]

So hindi din po ganun ka sure na merong dividends for that year?

parang ganun?

Dividends are not (usually) guaranteed by the company. It depends on their payout policies. Some companies are consistent in giving out dividends, some are not.

The board approves first of dividend payouts then saka nila idi-disclose (required) sa public kung kelan and kung magkano.

Once disclosed, it's available to the public. Try to check out different sources, baka kasi yung ibang online sources eh hindi updated.

[BG]

Paumanhin kuya danny, di ko lang din maexpress ng maayos hehehe,

pero natumbok ni sir Noics02b. salamat!