I initially got in at $1.36 and some extras at $1.30 in a SPP. Added to my holding last year again at $1.63.
While the capital gains haven't been great, the dividends and use of the DRP can yield some pretty decent returns per annum as per following example:
Buy 10,000 DUE for $1.60 after a dividend is paid 10c dividend paid (SP is approx $1.75 but then drops to $1.60 again) DRP applies 2.5% discount so get $1,000 worth of shares at $1.56 = 641 shares. 10c dividend paid (SP is approx $1.75 but then drops to $1.60 again) DRP apploes 2.5% discount again so get $1,064 worth of shares at $1.56 = 682 shares
Before next dividend you sell the 11,323 shares at $1.75 for $19,815
So in a year you've turned $16,000 into $19,815 just by taking advantage of DUE's dividend reinvestment plan and trading pattern in line with dividends. Thats a 23.8% return in a year basically with only approx 10% of that attributable to actual share price growth. So by taking advantage of the high yeild and discounted DRP your able to make almost 14% on DUE.
Obviously this trading pattern won't always hold true and DUE could go either way, but so far its served me well, and providing they keep refinancing their debt as recent announcements have suggested, there should be no reason for them to reduce the dividend or their share price to collapse.
as always DYOR but playing the DUE dividends can be a rewarding strategy.
DUE Price at posting:
$1.70 Sentiment: None Disclosure: Held