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Banco Santander, S.A. Message Board

  • nysexxx nysexxx Apr 3, 2013 9:53 AM Flag

    Another dividend question

    I have been taking the shares. Isn't the issuance of additional shares bloating the float? How many millions of shares are they issuing each and every quarter? Thanks in advance.

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    • 2011 Q4 (data from CNBC)
      Common Equity :98982
      Common Share outstanding:9975
      book value :$9.92/sh
      2012 Q4
      Common Equity :98488
      Common Share outstanding:10533
      book value::$9.35/sh
      For 2012, I got 78cents interest but the book value drops 57cents.
      Is it a very good deal. probably not.
      It would be better to buy some large stable Corps which has dividends higher than 3%
      But it is OK. At least it is better than deposit the money into CD.

      For year 2013 would be a different game, because SAN does not need to write off huge chunk of real estate loss. The book value will not drop so much like year 2012. (if the whole Europe collapse is another case)
      So additional shares bloating the float is fine with me for year 2013.

    • Well, assuming the price stays stable the next 7 days, we should get 1 extra share for every 35 owned.

      As there are 10,500 million shares, this means an extra 10,500 / 35 = 300 million.
      So roughly 3% increased float per quarter.

      Great gift at the very depressed current price !