Dear readers,
I have shared previously at this blog on the scrip dividend scheme or dividend reinvestment plan (i.e. DRP). Readers who missed it previously can review it again at the link below:
http://ghchua.blogspot.sg/2010/11/scrip-dividend-scheme-details.html
Recently, during my conversation with one investor, I have discovered that he had elected to participate in the DRP for a REIT but did not choose the part cash, part share option. He choose Option 1 to let the company decide the number of units that he could be given, based on their computation. Incidentically, this REIT take the whole unit and ignore the decimal places to compute the number of units he is entitled to for each dividend payout. And for REITs, it is even worse because they tend to spilt one dividend into many components when computing the numbers. For example, below is the dividend payout for REIT M on 29 ......