the deal wrote:If Mr Stark takes the 4.8 M and buys KK shares at the current prices he will earn over Sh600K in dividends in 2012 if KK pays a dividend of Sh1.30 vs the Sh450K he will from renting his property at Sh35K per month.
Invested in Q3? Or over 1 year? Or more
If on the other hand Mr.Stark invests the 4.8m in T/Bills while he thinks about what to do with it...
Like you suggested earlier, the yield on the rental property will be lower. Factor in taxes on the rental income (I'm assuming at 30%) and other expenses.