Tuesday, 16 May 2017

Will I be Taking Scrip or Cash Dividends for Frasers Commercial Trust?

I have been taking scrip dividends instead of cash for the last 3 quarters. My average price for FCOT is $1.333.


This time round, the Offer Price per unit is $1.3216. The current share price as at the time of writing is $1.335. The current dividend yield based on the Offer Price should still be above 7%. The share price is also below the NAV of $1.54.


However, I will not be increasing my Units for FCOT even though the dividend yield is still attractive. If the Offer Price goes below $1.30, I may opt for Units again. I covered their recent earnings results here. 1 of my concern is regarding their lease expiry for these 2 years. That's something to take note of. In the meantime, I will keep collecting dividends or Units. FCOT is a Reit which I would keep for long term and buy on weakness through DRP.


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