The case for CBSH: For many years now CBSH has paid a 5% stock dividend. Add to that the $1 cash dividend and you get an extraordinarly high return on your investment. With CBSH as approximately $40 the 5% is a $2 sweetener on top of the $1 cash. If you sell the additonal stock each year you are receiving a 7.5% return ($3/40) Given that the stock is now selling at a multi year low you would be reasonable to assume that you could take to the bank a nice capitol gain on any purchase today in the next 18 months. WW
The stock dividend doesn't improve your return. Instead of slicing the pie into 100 pieces, they've sliced it into 105. Same pie, smaller pieces. For that matter, the cash dividen reduces equity, so the dividend comes at the expense of your share price. Don't get me wrong, I think this is a fine company. But you need to look at total return.