Which is why I won't be participating in the DRP. At current...

Which is why I won't be participating in the DRP.

At current prices, the dividend yield will be minuscule (what less than 2% ?). By the same token my dilution will be similarly small (<2%).

Given I believe the company is well above fair value, my 2% dividend has substantially more value, than my loss of intrinsic value. On top of that, my dividend comes with franking credits.

And what's more, given ARB's ability to deploy capital at high rates of return (despite the increasing investment in exports), the retained earnings will generate more value than my loss due to dilution.

So the way I see it, all those shareholders that are clambering to give their money away so as to avoid dilution, are subsidising my present dividend and my future growth, and are having to pay tax for the privilege.