Veresen Inc. T.VSN.DB.B

RE:Dividend Yield

[whodathunkit]

EA12 wrote: Great jump in share price, offer price of 18.65. I would like to hear comments on the yield. Our $1.00 on the 18.65 share price is about 5.4%. Converting the shares to Pembina at 0.4287 VSN to PPL at the PPL share price of 43.50 would result in a 4.7% yield on the same money.

I think an easier way to look at that is actual value of the dividends.  If you have 100 shares of VSN you would be getting $100 per year.  100 shares translates into 42.87 shares of PPL at a new dividend rate (after the takeover) of $2.16 gives you only $92.60 per annum.  So yes, it would appear that there is a small yield loss.

Having said that, VSN's dividend has been stagnent for the last 10 years while PPL has had small steady increases for the past 6 years.  As well, your investment in PPL over the past 5 years has gone up about 60% in share price while VSN has only gone up about 40%.

PPL is a much better investment and now will be significantly improved with the merger.

Cheers.