Horton wrote:My 2 cents wrote:VituVingiSana wrote:Why pay a dividend when you are going to shareholders to raise cash? It's better/cheaper to NOT pay a dividend than raise cash thru a Rights Issue...
Rights Issue includes additional costs for lawyers, brokers, CMA, NSE, etc...
Yet the rights issue is on, so why not just pay the dividends?
additional capital requirements!
Peni mbili... Was I not clear?
Paying a dividend when you are RAISING cash... means you need to raise ADDITIONAL cash to cover the dividend... Silly when you pay a cost 3%+ to raise money!!!
StanChart are not idiots but look at their counterpart KCB for lessons on how NOT to run a bank...
Another scam artist is Stanbic... who screw their minority shareholders over & over...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett