2nd Chance Properties

[KopiKat]

If I am not mistaken, the take up rate for the scrip dividend is very high.

AR 2011 pg 17:

It is true that the more cash you distribute, the less you have for growth. We have overcome this problem by adopting the Scrip Dividend Scheme, with which more cash will be retained if more shareholders take up scrip. The controlling shareholder and present CEO have committed himself to opt for scrip on a permanent basis. Results from the recent Scrip Dividend Scheme FY10 showed that only 8.67% of shareholders opted for cash dividend.

Shareholders who opt for cash dividend may face dilution in DPS if the Company cannot utilize the proceeds effectively. Historically, the Company managed to raise DPS despite issuing bonus warrants and scrip shares - clearly, they have a track record and shareholders who opted for scrip would have benefited from the compound returns. New shareholders will have to decide whether can the Management continue to deliver - in some sense, this isn't unique as it should be asked for any company !

(Not Vested)

For FY11, 16.2% opted for cash.
DRP is at 10% discount, so IMO, it does make sense to opt for DRP.

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I am expecting DPS of 3.3 cts, which is more than 8% yield (excluding the free warrants).

Your expected DPS = 3.3ct was provided as a Dividend Guidance on 7-May. I know someone else who's vested and was told about this guidance, so I went to check.