Sell now at $3.62 and use cash to invest in other opportunities
Hold and receive and extra 13 cents per share ($3.75) plus franking credits of 10 cents equals an extra 23 cents.
Assuming the extra 13 cents cash is received on 30 June and based on 1000 shares: The extra cash is $130 earned over 4 months. This equates to ($130/$3,620) = 3.59% gross return or an annualised return of 10.7%. In addition, the franking credit of $100 in March 2019 when the ATO refunds me my tax return.
I see the hold and wait for the takeover strategy as a very low risk way to earn 3.6% plus franking credits.
I probably will sell early when I see a great opportunity to make a 20%+ type investment.
