Daily dividend news for investors in dividend stocks

Jos. A Bank's New Dividend Move

Published Mon, 21 Jun 2010 10:09:57 -0400 on Seeking Alpha

Joe Banks (JOSB) announced today a 50% stock dividend. In other words, that's a three-for-stock stock split. If you own 200 shares, you'll get another 100 and you can expect the share price to drop by 33% (yes, a 50% increase followed by a 33% drop brings you back to where you started). Ultimately, a stock split doesn't mean anything to shareholder value. Companies say they do it to increase liquidity but that didn't hold back Berkshire Hathaway (BRK.A) for many years. In reality, these are nice press releases companies like to put out throughout the year, and JOSB has done well.... Read more