Monk wrote:VituVingiSana wrote:Monk wrote:Monk wrote:tandich wrote:SCBK board proposes to:
* halve final dividend and,
* offer 1 bonus share for every 10 held on 27 Apr 2020.

It's going to be a tough year for Income Investors.
On second thoughts, the bonus shares are quite heavily discounted at Ksh 75, against the current market price of Ksh 165.
Discounted how now?
It's like the cake we used to wait to devour at home. Then some "visitor" shows up and that cake was sliced up into more pieces. Same cake. Smaller piece.
In other words, a dilution. Any suggestion on how to mitigate it? Average down after the market has found a new level?
There is no dilution for EXISTING shareholders.
If you owned 1% of SCBK before the bonus, you will still own 1% of SCBK after the bonus. Your ownership % doesn't change.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett