TSX:HSE.PR.B - Post by User
Post by
RagingBull3on Jan 01, 2021 7:55pm
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Post# 32208256
DRIP..... from a shareholder point of view I think it's
DRIP..... from a shareholder point of view I think it's a financially bad decision. It's basically a stock split where you have to pay TAX. Think about it....
If everyone did a DRIP, that's a stock split. But since you are saying it's a "Dividend" you have to pay TAX.... I'm guessing. You Gain nothing and instead have to pay tax. Sure, you get more shares, but also you are diluting all your other shares.
This supresses the share price, which then become part of the Trend. Probably why one of the reasons why Husky's commons share price charts of the years look the way it does.... Majority shareholder probably DRIPing.
Why pay the Taxman for what's basically a stock split?
All just my guessing/opinion.