11-16-2018, 07:40 AM
I currently receive special cash dividends from Main Street Capital and CME Group. This month, Commerce Bancshares, goes ex-dividend in advance of paying their annual 5.0% stock dividend. The stock dividend is in addition to their regular cash dividend of 1.44%. Earlier, I asked Investor Relations about this;
CBSH has paid a stock dividend since 1994. They have found it to be very popular with retail investors who hold their stock. It's paid at the end of the year in December. This year, the Record Date is 11/30/2018. The Ex-date is generally two business days before the Record Date. Whole shares that are issued are not subject to federal tax. Any fractional shares will be issued as cash and are taxable.
I was attracted to CBSH for a variety of reasons, mainly their improving financials. To be clear, I'm not suggesting anyone buy them. They are neither distressed or
trading at deep value. Yet it is nice to find a share-holder friendly company with a little growth to go along with a 6.4% dividend.
I'll be interested to see how this works out. I expect to see the stock drop later this month. I also wonder if this is treated as a stock split to avoid taxes. CBSH continues to buy back shares and it doesn't look like this policy has been dilutive to shareholders.
CBSH has paid a stock dividend since 1994. They have found it to be very popular with retail investors who hold their stock. It's paid at the end of the year in December. This year, the Record Date is 11/30/2018. The Ex-date is generally two business days before the Record Date. Whole shares that are issued are not subject to federal tax. Any fractional shares will be issued as cash and are taxable.
I was attracted to CBSH for a variety of reasons, mainly their improving financials. To be clear, I'm not suggesting anyone buy them. They are neither distressed or
trading at deep value. Yet it is nice to find a share-holder friendly company with a little growth to go along with a 6.4% dividend.
I'll be interested to see how this works out. I expect to see the stock drop later this month. I also wonder if this is treated as a stock split to avoid taxes. CBSH continues to buy back shares and it doesn't look like this policy has been dilutive to shareholders.