For brave investors
INVESTEC HAS a nice hot, enhanced dividend security listed on the JSE that allows investors to obtain all the benefits of a full ordinary BAT share for only R78/share. The instrument’s JSE code is BTIIHA and full details are available on investecwarrants.com.
The final instalment of R161,18 was due early in January 2008. Rather than paying the instalment, investors usually simply let such an instrument roll over in the new security that Investec issues a week or so before the expiry date.
Briefly, the current investment in BTIIHA gives an investor the benefit of sharing in the full increase in BAT’s share price between now and December and, after it’s rolled over in the next issue with the code BTIIHB, the investor can also share in the full dividend of at least 880c that will be declared by March 2010.
Remember, such instruments are mainly for investors with a high risk profile and basic knowledge of direct investments on the JSE is also required. Nevertheless, I consider such investments, especially now in BAT, to be much safer than any of the small-cap shares so often hawked around.