Does not matter tax-wise. It's all a dividend.
20% will be paid in cash. 80% in stock. If lots of people want all stock, I assume that will leave more cash for people who want cash. The dividend shares will be issued at a price based upon 5 trading days beginning later this month. The lower the stock trades over those 5 days, the more new shares will be issued, and vice versa. Company estimates are based upon a $15.88 shareprice, with 20% cash going out, so about 60 million shares outstanding after........and estimating a $0.97 per share annual payout.
I'm taking all shares if I have the option. I like the high yield and view Olive Gardens as being very safe. And there may be more growth as more companies decide to take real estate off their books.
Maybe Apple is taking advantage of this by buying the maximum shares they are allowed to......every day.
That would be good.
Carl Ichan comes to mind. He really is getting creamed with his energy plays. He may just need cash.
Other funds who made big energy bets may be in the same sinking boat.
I think Carl exiting Apple might be a good thing. :-)
With just a small chunk of Apple's cash.
What a nice thing to do. Help out our oil patch. Help our banks. Give it away here before the EU steals it.
"A Spectra spokesman said its Chesapeake contract to supply gas out of the Marcellus region accounted for less than 3 percent of its 2015 revenues."
Good to know. :-)
Apple's PE is 9. Back out the cash and it's a PE of 6.
Apple has $225 Billion in cash stashed.......and a tax holiday coming in 2017.
Apple is trading like a small cap oil driller. :-)
I picked up 2,000 more shares today. The yield on what most would consider very high quality assets is just too hard to pass up. People will be lined up at Olive Gardens whether all of the small cap oils go under. :-)
It's amazing. No better example of throwing the baby out with the bathwater....IMO. The market was trading SE off like it is a driller.
Headed for a $1.90 per year payout, and with natgas conversion by power companies becoming a longer term trend, SE can move back to the low $40s, and still be yielding around 5%.
Also, I believe people who don't respond or do nothing, will get 80% shares and 20% cash. This would be the "default" payout. :-)
I plan on taking all shares, so this may leave more cash for someone else.
Soon, your broker will be contacting you about how you would like the purging dividend to be paid. It is my understanding that you may request up to 20% to be in cash, and the rest in shares. Many people may ask for all of it to be in shares, leaving perhaps more cash in the pool for those who want more cash.
There is always much confusion with investors with these types of transactions. I think I the long run, this will be a very nice yield with investment grade properties. The company intends to pay a regular dividend of about $1
SE will discuss new fee-based projects coming on-line in 2016 on Feb 2nd.
Meanwhile, bitter cold has come to much of the country. Good for natgas.
I'm a bit high....but:
$16 x .06 = 96 cents.
$14 x .07 = 98 cents.
So I believe that at today's price, the yield is about 6.5%.
I assume the company is estimating that investors will see a 6.1% yield as fair value, as they are basing their calculation on a $15.88 average share price after all distributions are made.
I guess my point is that based on the quality of the assets, this looks to be a value for investors seeking income......and FCPT should be somewhat immune to a volatile market.
Apple has $232 Billion now that Q1 is over. Apple will have $250 Billion by July.
Apple will have lawyers tie this up for years.......or until the EU settles for $1 Billion.
The EU steeling $10 Billion will not hurt Apple.
There is confusion by many Darden holders, many of whom may not know very much about what's going on. I doubt market conditions or oil prices will effect this stock much.