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KCB FY 2015 PBT +12% and PAT +16%
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Pesa Nane
#41 Posted : Wednesday, March 02, 2016 3:53:14 PM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
Ericsson wrote:
@Madebe and all;
What the script dividend by KCB means is that they will give a bonus issue of 1:1 and ksh.1 dividend.
The bonus shares don't qualify for dividends

Never been more wrong!
Pesa Nane plans to be shilingi when he grows up.
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Aguytrying
#42 Posted : Wednesday, March 02, 2016 4:37:57 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
Ericsson wrote:
@murchr,littledove and mlennyama;
The formula is as below;
KCB is to give a dividend of sh.2 per share which translates to ksh.6.05bn if u multiply sh.2 by the number of issued shares of 3.025bn.
Instead they have decided to give ksh.1 in cash and sh.1 in script dividend.
NB:@littledove-shareholder has no choice to choose whether to take script dividend or cash.
The par value of KCB share is ksh.1 and the total number of issued shares is 3.025bn
After giving the ksh.3.025bn as dividend based on sh.1 per share,the balance remaining is ksh.3.025bn.
This ksh.3.025bn instead of giving in cash kcb gives u shares instead.
Divide ksh.3.025bn/sh.1 gives u 3.025bn shares
Divide script dividend of sh.1 by the par value sh.1 gives u 1 which means bonus of 1:1
Etc eTc etC


Wrong, They will determine the conversion price. It won't be 1.00. Possibly a price very close to current market price.
The investor's chief problem - and even his worst enemy - is likely to be himself
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madebe
#43 Posted : Wednesday, March 02, 2016 4:40:24 PM
Rank: Member

Joined: 10/7/2010
Posts: 251
Location: nairobi
enyands wrote:
Ericsson wrote:
@murchr,littledove and mlennyama;
The formula is as below;
KCB is to give a dividend of sh.2 per share which translates to ksh.6.05bn if u multiply sh.2 by the number of issued shares of 3.025bn.
Instead they have decided to give ksh.1 in cash and sh.1 in script dividend.
NB:@littledove-shareholder has no choice to choose whether to take script dividend or cash.NOT CORRECT!!!!u have a choice to accept or not!!
The par value of KCB share is ksh.1 and the total number of issued shares is 3.025bn
After giving the ksh.3.025bn as dividend based on sh.1 per share,the balance remaining is ksh.3.025bn.
This ksh.3.025bn instead of giving in cash kcb gives u shares instead.
Divide ksh.3.025bn/sh.1 gives u 3.025bn shares
Divide script dividend of sh.1 by the par value sh.1 gives u 1 which means bonus of 1:1 Again wrong. A scrip is not a bonus. This is why people need to attend George Mangs training on Young NSE investors
Etc eTc etC


So it will be market rate used on the 3.025b to issue shares or will there be a special rate
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  | | Edit by user: Wednesday, March 02, 2016 4:42 PM | Reason: Not specified
Ericsson
#44 Posted : Wednesday, March 02, 2016 4:47:38 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,808
Location: NAIROBI
@Aguytrying
the sh.1 is the par value of KCB share not mkt value.

@madebe;
Only sh.1 of the sh.2 proposed as dividend will be given in cash.The remainder is in terms of additional shares
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#45 Posted : Wednesday, March 02, 2016 4:50:22 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,808
Location: NAIROBI
Dividend reinvestment plans give shareholders the opportunity to use the cash dividends on their shares to buy more shares in the same company. With a Scrip dividend, new shares are issued by the company, which can be acquired by investors instead of a cash dividend payment.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#46 Posted : Wednesday, March 02, 2016 4:52:54 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,808
Location: NAIROBI
A rate value per share will be determined to divide by the amount of money i.e ksh.3.025bn to know how many additional shares will be issued and the conversion factor e.g 1 for every 8,7
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Aguytrying
#47 Posted : Wednesday, March 02, 2016 4:58:35 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
Ericsson wrote:
@Aguytrying
the sh.1 is the par value of KCB share not mkt value.

@madebe;
Only sh.1 of the sh.2 proposed as dividend will be given in cash.The remainder is in terms of additional shares


They will announce the price which will be used to divide with the 3.025 b. But I can tell you for free it won't be 1.00
The investor's chief problem - and even his worst enemy - is likely to be himself
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Pesa Nane
#48 Posted : Wednesday, March 02, 2016 5:00:24 PM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
Ericsson wrote:
@Madebe and all;
What the script dividend by KCB means is that they will give a bonus issue of 1:1 and ksh.1 dividend.
The bonus shares don't qualify for dividends

Ericsson wrote:
A rate value per share will be determined to divide by the amount of money i.e ksh.3.025bn to know how many additional shares will be issued and the conversion factor e.g 1 for every 8,7

d'oh!
Pesa Nane plans to be shilingi when he grows up.
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Ericsson
#49 Posted : Wednesday, March 02, 2016 5:00:46 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,808
Location: NAIROBI
@Aguytrying
Clarified in the above post just before you sent yours
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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madebe
#50 Posted : Wednesday, March 02, 2016 5:10:57 PM
Rank: Member

Joined: 10/7/2010
Posts: 251
Location: nairobi
Pesa Nane wrote:
Ericsson wrote:
@Madebe and all;
What the script dividend by KCB means is that they will give a bonus issue of 1:1 and ksh.1 dividend.
The bonus shares don't qualify for dividends

Ericsson wrote:
A rate value per share will be determined to divide by the amount of money i.e ksh.3.025bn to know how many additional shares will be issued and the conversion factor e.g 1 for every 8,7

d'oh!


SIMPLIFIED: if you had 1,000 your dividends will be 2.00*1000*.95= 1,900. you will receive ghalf in cash ie 950/. if they dicided that each share will be 40 bob it means your scrip will be 950/40 which equals to 23 shares. it therefore means that price is the one that will determine if you accept the scrip or take cash dividends...Liberty sold their scrip close to the market price, EABL sold their scrip above the market price and that is how DIAGEO became to own over 50% of EABL
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