Brompton Split Banc Corp T.SBC

RE:RE:Brompton reports SBC UNIT NAV @ $25.45 to May 27

[mouserman]

oldtrustguy wrote: Mouserman  
looking for input
                                                                                                                                                    

Do you think it will be a extra dividend or extra stock
I think it was 2017 they gave a extra 21 shares for each 100 shares
The stock price dropped from $16.15 to $12.95 you needed $13.35  to be even
A week later it dropped as low as $12.10 and then slowly increased.

You would be better off to sell before and rebuy if it is like last time.

If you sold SBC at 14.92 and buy BK at 12.18 you would increase
your distribution from about 8% to close to 12%

Thanks ... oldtrustguy

I dont think you can ever get 12 % by buying BK.... unless you buy it low and hold for a few months when the banks are going up.
But based on their formula the payout is usually right arond 10% , many times its lower.
Every  month the distribution rate will be based on 10% , using the  weighted average of the last 3 trading days of the previous month.  IN MAY that works out to $12.21
10% of that is 1.22 , so the payout monthly would be just over 10 cents per share.
If you were buying today at $12.50 , the payout in JUNE would equate to less than 10%.