1Wk·

Bonus shares and dividend

https://www.finanzen.net/nachricht/aktien/geld-fuer-aktionaere-byd-aktie-hebt-ab-byd-belohnt-investoren-mit-bonusaktien-14412149

www.finanzen.netBYD-Aktie wird gefeiert: Geldregen und Bonusaktien für Aktionäre

13 Comments

Stefan@Spielwiese

1Wk

I have never had this case before. Can anyone give me more details?

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Jüüürgen@-Juergen-

1Wk

@Spielwiese Me neither. Dividend is slightly higher than last year, but that's not your question. I think the ordinary shares will act like a stock split, so the bonus shares will give us an additional effect. As I said, this is completely new to me, even after years. I'm curious to see what "old hands" can tell us, or it will probably be a matter of time before we can read an explanation of this elsewhere.

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Gerald@Irlandfan

1Wk

ChatGPT: Example: You hold 100 BYD shares.

If BYD awards 5 bonus shares for every 10 existing shares, you will receive 50 new shares.

After that, you have 150 shares - but:
The share price is adjusted arithmetically so that nothing changes in the total value of your position.

Why is BYD doing this?
Signal to investors: BYD is showing optimism and wants to make the share more attractive.

Increase liquidity: The lower price (more shares, same value) makes the stock cheaper per share - which is more interesting for small investors.

Image effect: Particularly popular in Asia - many shareholders see bonus shares as a "reward".

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Patrick Schäfer@Hotte1909

1Wk

So I get 800 new shares for my 400 shares, or have I misunderstood? Plus just under €0.48 per share in dividends for the 400. So you can definitely see that as a split or not?

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Chris@Multibagger

1Wk

@Hotte1909 they write 8 bonuses for 10. so not 800 new ones but 320. then you would have 720 in total.

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Patrick Schäfer@Hotte1909

1Wk

@Multibagger In addition, twelve capitalization shares (new shares issued to existing shareholders free of charge from the company's capital reserves, editor's note) are to go to shareholders for every ten shares held
Plus the additional 12 or?

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Jüüürgen@-Juergen-

1Wk

@Hotte1909 richtig

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IDtodal@IDtodal

1Wk

I still don't understand it so 100% I get 320 new shares with 400 shares, but the value of the share decreases so that I stay with the same position size. What do I ultimately gain

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Patrick Schäfer@Hotte1909

1Wk

@IDtodal more shares 😀

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Jüüürgen@-Juergen-

1Wk

Low price, therefore more interesting and less "expensive" for small investors according to experience

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Patrick Schäfer@Hotte1909

1Wk

@-Juergen- but byd doesn't cost €500 or anything like that.
I have something in my head that they have to buy a minimum amount of employee shares and that's why there are often splits, but I think that was the case in Japan with Sony last year. 100 or so was the minimum

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Patrick Schäfer@Hotte1909

1Wk

@-Juergen- so if the employees want to take advantage of this

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JAC@jacxon4

1Wk

So is still a dilution? I'm also confused... If bonus shares are only given to investors...

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