bonus shares ex-date 22 April
$DBS Group Holdings(D05.SG$Do note that bonus shares do not mean you get an extra 10% capital. The share price will fall proportionally which means your total capital will remain the same, just with 10% more shares. However, do also note that these bonus shares are eligible for future dividends which means you get 10% extra dividends, bringing the dividend yield to close to 7%. Think of it as a long-term game.
Some considerations include a mass selling event after the ex-date for bonus shares where the share price will fall by more than 10%. However, if you’re in for the long run there’s nothing to worry about since the share price will rise back anyways. At the same time, there might also be a mass buying event since share price would be a lot cheaper to buy in.
And yes, you can sell odd lots on moomoo.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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trade with what you see, not what you think
FOMO and greed make you lose money
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Kelv78 : To add that that. Say your target price is 32.5. Then plus 10% is 35.75 so you know you can aim to buy at 35.75 before the share issue.
profitpilotOP Kelv78: Very good point. I'm quite curious if DBS will reduce future dividends because of the bonus share.
Kelv78 profitpilotOP: Haha. That is anyone’s guess. But so long as Piyush in charge, they did make a commitment to increase the dividends every year and if you see the last few years they kept to that commitment
Steven Gao : Is dbs share very difficult to get from the open market ,so one has to wait for dbs to issue/give bonus shares to get extra shares ? This is something always confusing me . If capital remains the same. why you call it a BONUS ? How if I sell all my dbs share at a higher price before XB and wait for after XB to get back 1.1x of my dbs share , could my expending be even cheaper ??
profitpilotOP Steven Gao: Think of bonus shares as DBS's way to reward investors. Benefits of bonus shares include: 10% higher future dividends and faster rate of capital returns in the long run.
Regarding your thoughts on selling before and buying after, there's a risk. Because you don't know how much the share price will drop after the bonus shares. It could go down like crazy due to people selling away their bonus shares. But it could also rise a lot due to people buying in because of the low price.
There's no right or wrong. No one knows what's going to happen. Follow your heart on this one.
Steven Gao profitpilotOP: Thank you ! I just feel ( hope) the bonus share should be something that not impact the share price when it is issued . So you are really rewarded by getting extra shares in your hand . Anyways , if lazy to trade too much for small amount of extra gains with risk , just stick to what I have in my hand. Interesting : If one sell dbs at 36.32 on Thursday and buy back yesterday at 35.50 he should get more than 0.54 dividend with the same number of shares in hand . Should it be similar for Bonus share….. ?
102851617 Steven Gao: no one can tell....
102603982 : If I buy stocks before the bonus dividend date... will I get bonus shares...? Thanks for the answers
profitpilotOP 102603982: Yes you will
102603982 : OK... thank you