SSE’s £324.5m cash sav­ing trick


IN­VESTORS BUY UTIL­ITY stocks largely for their re­li­able and hefty div­i­dends. Com­pound­ing, where in­vestors rein­vest their in­come back into new shares, has sig­nif­i­cant po­ten­tial for value cre­ation.

En­ergy big six sup­plier SSE (SSE) op­er­ates a scrip div­i­dend scheme and is reap­ing the re­wards, sav­ing a stag­ger­ing £324.5m in cash af­ter 27,670 share­hold­ers elected to take their lat­est pay­out in new shares.

That was for the fi­nal, or sec­ond half, 63.9p per share div­i­dend. That will mean is­su­ing nearly 23.5m new shares in the com­pany, beef­ing up the shares in is­sue count by 2.35%.

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