NCIB vs DividendsRan some numbers based on plans to buy back about 1mm shares to see the effects on key shareholders, being me, insitutions and the Wills.
| | | | | | | | | | dollars | return |
| me | 10000 | 0.000444444 | $ 79,500.00 | | 10000 | 0.00046512 | $ 83,197.67 | 0.00002067 | $ 3,697.67 | $ 0.05 |
| | | | | | | | | | | |
| institutions | 2904750 | 0.1291 | $ 23,092,762.50 | | 2904750 | 0.13510465 | $ 24,166,844.48 | 0.00600465 | $ 1,074,081.98 | $ 0.05 |
| | | | | | | | | | | |
| wills | 7537500 | 0.335 | $ 59,923,125.00 | | 7537500 | 0.3505814 | $ 62,710,247.09 | 0.01558140 | $ 2,787,122.09 | $ 0.05 |
| | | | | | | | | | | |
| float | 12047750 | 0.535455556 | $ 95,779,612.50 | | 11047750 | 0.51384884 | $ 91,914,710.76 | -0.02160672 | -$ 3,864,901.74 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | 22500000 | | 178875000 | | 21500000 | | 178875000 | | $ - | |
| | Osshares | | MarketCap | | Osshares | | MarketCap | | | |
| | | | | | | | | | | |
If the plan to redeem 1mm in shares is successful, that is a 5% return to all shareholders, so just about the current dividend yield, and can be seen as the other half of our desired dividend.
Would rather have cash but ...that is another posting :)
The other interesting result is a magnified result in percentage of the company held by Wills and the institutions because they start wih significant postions....
The Wills earn 1.55% more of the company, institutions about .6%, while I barely register. Totally the result result of the numbers and amounts invested and not unfair by any measure, but it is a significantly RELATIVELY more favourable outcome for insiders and it is something that can creep forward and should be considered. Combined, it earns the insiders 2.15% more of the company when the float is reduced by 1mm shares