Macquarie recently announced a share purchase plan for retail investors, before jumping into a decision as to participate here are some factors to consider:
Cost Saving
There is no brokerage or commissions payable by you when apply for shares under this offer. So if additional Macquarie shares are on your shortlist there are brokerage savings to be had! Price – The price shares are being offered at is the lower of $191.28 or a 2% discount to the volume weighted average during the 5 trading days immediately prior the closing date. With shares trading on market above $200 there is a nice discount on offer to top up your holdings!
Future prospects
Macquarie shares have performed very strongly rising over 40% this past year. Given this price appreciation it’s prudent to consider your views on their chances of future outperformance potential before committing to purchasing additional shares. Do you believe the shares will continue to rise or would you be better off investing in a different stock?
Diversification
How does additional MQG fit into your overall portfolio strategy? Given the price rises discussed above it may be worthwhile reviewing your overall portfolio allocation. If you take part in the offer how heavily weighted is your portfolio to this stock? Hopefully the above points give you some points to consider before making your decision regarding the purchase plan.
DYOR and Happy Investing!
ASX Dividend Aristocrats 