GREY:CRIUF - Post by User
Comment by
SirHumpsAloton Jan 16, 2019 12:57pm
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Post# 29240369
RE:RE:Everyone is partly right and partly wrong...
RE:RE:Everyone is partly right and partly wrong...A march 31 Quarter end shoudl typically pay out in MAY. In this case it will pay out in JUNE. That is a 1 month delay. The next dividend shoudl pay out in AUGUST thus reversing the 1 month delay.
The lost months that you talk about are paper months... instead of getting Januarys' payment in feb you get it in June... 4 months late. Feb is 3 months late, March is 2 months late. Once this is corrected in august teh delays will be reduced to the difference between the schedules.
The end result is that NO MONTH GOES UN PAID. You will get a dividend for every month in 2019. There is NO cut.
campst wrote: SirH: this is not the case wrt dividends from the shareholder perspective (vs. Company perspective). At the end of 2019 shareholders will get a tax slip for 10 months worth of $.07 dividends. The delay is permanent. The company is stretching its payables. Under the old scheme, there would be one month's dividends on the quarterly balance sheet. Under the new scheme there will be three months dividends payable. The company benefits from the on time freeing of cash in the amount of two months payable. Interestingly, the actual benefit is higher since the payout date has been pushed out an additional month. So the company will benefit a total of three months.