Polliesdividend

Recent Sell – Rights Bayer AG – 2018

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?

 

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Sell

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.

 

New

Shares

Rights to

Buy

Rights

price

Total

Right Price

Stock Price Total

Cost

Average

Share Price

2 11 1,29 14,19 81,00 184,19 92,10
4 34 1,29 43,86 81,00 375,86 93,97
6 57 1,29 73,53 81,00 567,53 94,59
8 80 1,29 103,20 81,00 759,20 94,90
10 103 1,29 132,87 81,00 950,87 95,09
12 126 1,29 162,54 81,00 1142,54 95,21

 

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

 

Reasons

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.

 

Conclusion

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!

Cheers,

Pollie

Disclaimer: I’m not a registered investment adviser, investment professional, brokerage firm or investment company. Readers are advised that information on the website is issued solely for information purposes and not to be construed as an offer or recommendation to buy, hold, or sell any securities. All information, opinions, and analyses included are based on sources believed to be reliable, but no representation or warranty is made concerning accuracy, correctness, timeliness, or appropriateness. Please consult with an investment professional before investing any of your money.

 

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