Wednesday, May 30, 2018

Windfall for investors

Shareholders in Standard Life Aberdeen are due for a windfall pay-out of £1bn. A further £750m is to be spent on buying back shares, which has the effect of raising the share price, as a further benefit to shareholders. It leads directly to a reduced number of shares when dividends are distributed, so the share price can be expected to rise.
One of the reasons Standard Life Aberdeen can give away so much capital is that divesting itself of the investment division reduces the amount of capital it needs to carry.
http://www.bbc.com/news/uk-scotland-scotland-business-44296599

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