I thought I would start another thread expressing my opinion on the advantages of a dividend reinvestment plan for NEU . 1. The company has over $80 million dollars in franking credits locked up . 2. The normal discount on dividend reinvestment plan is between 1and 5%. 3. What I am suggesting the company consider a special once off dividend to use the franking credits and give the shareholders the opportunity to get a cash dividend or dividend reinvestment plan at say a 2.5% discount to the current price . 4 Based on today’s price of $15.17 the discount would be approx 37 cents so the shares would be issued to the shareholders at $14.80 . 5.Shareholders would unlock the franking credits and tax would be mostly paid on the dividend. 6.I for one would reinvest my potential dividend in NEU and not take the cash .
NEU Price at posting:
$15.17 Sentiment: Buy Disclosure: Held
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