SCOTT® traditionally pays an interim dividend in May and a final dividend in early December. Shareholders can choose to receive their dividend in cash; or in fully paid ordinary shares, through our Dividend Reinvestment Plan; or a combination of both.
The Dividend Reinvestment Plan allows you to increase your investment in SCOTT by acquiring additional shares, free of brokerage charges. Additional shares acquired under the Dividend Reinvestment Plan are most likely to be issued at a discount to the trading price of the shares on the NZSX.
We have offered a Dividend Reinvestment Plan to shareholders for the following reasons:
- It provides shareholders with choice to receive their dividend entitlement in their own preferred combination of cash and/or shares. Some shareholders prefer to receive a regular cash flow stream, while other shareholders prefer to accumulate shares for longer term capital growth.
- It aids the liquidity of the company`s shares. We are aware of interest by potential investors to purchase shares in SCOTT, but sometimes there are insufficient shares being offered for sale on the market to meet this demand.
- We continue to seek acquisitions that will grow the company and which are based around our core strength of innovative industrial automation. Our preference is to finance acquisitions through operating cash flows and to minimise bank borrowings. Offering shares in lieu of cash dividends potentially allows shareholders greater participation in these acquisitions.
Participation in the Dividend Reinvestment Plan is optional.