Artemis VCT now seems to be running at a premium - highly unusual for a VCT.
The RNS of 6th April quotes a NAV of 75.49. Todays's price is 77/80.
I know that there is an 8p dividend due on 11/5/18, with an ex div date of 12/4/18, but this shouldn't affect the above figures.
Any ideas on why there is apparently a premium - apart from simply accepting that it is currently a well-run VCT?
My wife will be pleased - she is a holder since 2005.
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Artemis at a premium
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- Lemon Quarter
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Re: Artemis at a premium
I also am a long term holder of Artemis. If you look at a graph of share price v NAV you will see that prior to special dividend payments historically the share price has gone up to close to or above NAV only for the discount to widen again afterwards. Could this be for tax planning reasons? The dividend would be tax free and then a subsequent sale of the shares might generate a capital gains loss.
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- Lemon Slice
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Re: Artemis at a premium
There have been previous references on this board to the practice of buying shares cum-dividend and then selling them ex-dividend.
This allows the buyer to take the dividend to their revenue reserves which are then distributable to their shareholders.
There will be an associated realised capital loss but this doesn't matter as the key reason is to be able to pay a certain level of dividend.
This allows the buyer to take the dividend to their revenue reserves which are then distributable to their shareholders.
There will be an associated realised capital loss but this doesn't matter as the key reason is to be able to pay a certain level of dividend.
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