Shares & Derivatives
What the stock chart doesn’t tell you: Dividends and Spin-offs
By Investment Moats  •  July 30, 2011
I have to thank Nick for highlighting this article to me. What the stock chart doesn’t tell you: Dividends and Spin offs 782337 131153628685656 Clemens Scholl We often first hand stereotype stocks based on the historical price movement. Take the example of this shipping stock Frontline (FRO). An observation of this stock from 2001 to 2011 will lead us to conclude that this stock is made for traders rather than investors because had you held on for 10 years you wouldn’t have made much. But often a lot of things were not accounted for in a price chart
  1. The dividends. For an initial investment of 10 dollar per share, Frontline paid a total of 55 dollars of dividends. That’s almost a 2 bagger in itself.
  2. Spin-offs. In 2004 Frontline spin off their ships to a trust like company to let Frontline focus on the risks and rewards and the trust on operating the ships. Investors in Frontline get spin-off shares in this company Ship Finance. ...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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