I sold my Rights Bayer AG
Just before the close of the deadline I sold my Rights Bayer AG. In my post from last Sunday, I told you how many Rights I received from my shares of Bayer AG and what my intentions were with these Rights. For more information about the Rights of Bayer AG, just read my Post: What to do with the Rights of Bayer AG?
On last Wednesday, just before the close of the deadline of 12:00 AM, I logged in at my broker account. At that moment the Rights were trading around €1.29. So I filled in this price in my spreadsheet and saw the following values.
And if we take a closer look this table, you can see that because I need to buy extra Rights in order to buy some extra share with a discount, the initial discount on the share price is almost gone. The share price for Bayer AG at that moment was € 95.80
This is something I shared with you in my post from last Sunday. And therefore it didn’t come as a surprise to me. After I filled in my spreadsheet, I made the decision to sell my Rights. The following arguments were part of my decision:
- The high cost of the total amount of extra Rights I had to buy;
- My broker fees were €8 to buy the extra Rights;
- In my opinion, the initial discount in relation to the number of Rights needed to buy some extra shares, was to low;
- Bayer AG pays an annual dividend, and has already paid its dividend for 2018;
- I can not easily recover all dividend tax from the German Government (I can only settle 15% with my Dutch income tax, the other 11.75% I have to try to recollect, which is a difficult process);
- The current Dividend Yield (2.70%) is below my weighted average Yield (3.58%) of my Vrijheid Fonds;
- The Rights prices were only declining on the last days before the deadline. In my opinion this means that the constitutional companies/investors aren’t very happy with the Rights and their conditions.
On the basis of these points, I made the decision to sell my Rights.
On Wednesday I sold my 12 Rights Bayer AG at €1.29 per share (excl. fees). With this buy I have collected € 7.48 of extra or special cash for my Vrijheid Fonds (after deduction of the fees).
The projected dividend income for 2018 for my Vrijheid Fondsis €3,507.
Again a small step in my journey and one-step closer to my goal. Did you own some Rights Bayer AG? And what did you do with it? I like to hear from you!
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