# My dividend reinvestment plan of WDC gave me some WDCN?



## jurn (2 March 2006)

Hi everyone,

I bought some WDC (westfield) and checked the box that says to participate in the dividend reinvestment plan.

Now some WDCN shares have appeared in my account
but they don't exactly look that useful. There's only 22 of them so its hardly worth selling, there is hardly any volume.
It says
Security Type 	NEW
what does this mean?
and did I fill something out incorrectly on my DRP form? I am used to ANZ and CBA where they give you the same share.

 :goodnight


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## visual (3 March 2006)

Jurn,imho new means the same not different,so they are new in the sense that they were bought with the div.Therefore a new date.


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## bullmarket (3 March 2006)

Hi jurn

It looks to me that the DRP units have been issued under a different code - in this case WDCN.

Reading through the Appendix 3B announcement on the 27/2 I see it says that the New Securities will rank for future distributions from March 1 but for the June 30 distribution these new DRP units will participate in the ratio 122/181.....ie....for the June 30 distribution these new DRP units will receive a distribution equal to 122/181 times whatever the WDC units' distribution will be.

Therefore since the distribution rates for these DRP units and the ordinary WDC units will be different on June 30 they have to be kept and traded separately on the market.  I would imagine that after June 30, assuming the DRP shares will participate equally in subsequent distributions, the WDCN units will be incorporated into the WDC code.

In the mean time you will have a small separate parcel of WDCN until June 30 

cheers

bullmarket


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## jurn (3 March 2006)

Hi Bullmarket,

I went to asx.com.au and read that announcement but I didn't understand it   
what does "rank for future distributions" mean? Is it to do with those new shares being considered for the next dividend?
If it is a dividend, doesn't westfield only give it out dividends every half year, not every quarter?
and where do they come up with those weird fractions from. hehe

the small parcel is OK for me if they eventually merge back into normal WDC shares.

thank you,
Jurn


			
				bullmarket said:
			
		

> Hi jurn
> 
> It looks to me that the DRP units have been issued under a different code - in this case WDCN.
> 
> ...


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## bullmarket (3 March 2006)

Hi jurn

I'll put my views on your queries in red.



			
				jurn said:
			
		

> Hi Bullmarket,
> 
> I went to asx.com.au and read that announcement but I didn't understand it
> what does "rank for future distributions" mean? Is it to do with those new shares being considered for the next dividend?
> ...




cheers

bullmarket


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## ghotib (3 March 2006)

Is it something to do with the stapling? 

Ghoti


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## boiler123 (3 March 2006)

I have the same problem as jurn.  Just got my WDC drp statement and shares allocated are WDCN.  Thanks for clarifying the problem.


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## jurn (5 March 2006)

bullmarket said:
			
		

> Hi jurn
> 
> I'll put my views on your queries in red.




thanks bullmarket. It makes more sense now.

I am expecting the next time WDC goes ex-div, WDCN will also go ex-div, then change into WDC. The WDCN dividend given will be a fraction (given above) of the WDC dividend.

does anyone know if this is a once off or is this typical of WDC?

Jurn


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