National grid rights issue - Any thoughts ?

[loggo]

What it says in the topic heading really - I have a few national grid shares that I inherited from my late father and I'm wondering what to do about the rights issue.
I am aware of the options but I'm unable to decide which way to jump as I don't have the financial skills to know what would be best.
Only talking in hundreds. But, living on a pension I need to make every pound do the work of two !

[Mr Dendrite]

Similar here. Inherited some shares, can’t decided which option to take, buy to maintain dividend (although it’s not a lot a year), sell to cover and gain a few shares at no cost or just let them lapse and take a few quid. Judging by the way the price has fallen since the announcement wouldn’t see much from option 3. Like you I’m not well enough informed to make the call.

[Ken_Code]

I think, rather than asking if you should buy more shares in them the pertinent question to ask is why are you choosing to hold on to the ones that you already have.

If you can answer that (to yourself) it’ll help you to understand whether you should buy more.

A good question to as if often this; if you had cash instead of your current holding, would you spend it on the shares you now have?

If not, why are you not selling them?

[loggo]

Ken_Code said:

I think, rather than asking if you should buy more shares in them the pertinent question to ask is why are you choosing to hold on to the ones that you already have.

If you can answer that (to yourself) it’ll help you to understand whether you should buy more.

A good question to as if often this; if you had cash instead of your current holding, would you spend it on the shares you now have?

If not, why are you not selling them?

I'm afraid I can't bring the hard nosed logic to the answer that I think you are expecting of me.

I have the shares because they were left me by my father. I certainly would not think of going out and buying any under normal circumstances However once ya year my wife and I are able to go out and have a dinner on the modest dividend and remember my old dad.

My interest would best be served by maintaining the status quo but plainly that is not an option.

Hence my post

[Ken_Code]

loggo said:

I'm afraid I can't bring the hard nosed logic to the answer that I think you are expecting of me.

I have the shares because they were left me by my father. I certainly would not think of going out and buying any under normal circumstances However once ya year my wife and I are able to go out and have a dinner on the modest dividend and remember my old dad.

My interest would best be served by maintaining the status quo but plainly that is not an option.

Hence my post

I understand the sentimental value. The shares you were left have this additional value over and above their financial worth.

Only you can decide if any more you buy would also have this additional value.

[C69]

I chose cashless take-up. Yes, it'll dilute my holding and potentially reduce future dividend payments, but it's the 'middle ground' option that suited me.

OP, you're aware that the deadline for either selling your rights or opting for cashless take-up is 5.00 pm tomorrow (31/05/2024)?

[loggo]

Thanks for that C69 - I think that's probably the way to go. I'll get straight on it.

[Mr Dendrite]

loggo said:

Ken_Code said:

I think, rather than asking if you should buy more shares in them the pertinent question to ask is why are you choosing to hold on to the ones that you already have.

If you can answer that (to yourself) it’ll help you to understand whether you should buy more.

A good question to as if often this; if you had cash instead of your current holding, would you spend it on the shares you now have?

If not, why are you not selling them?

I'm afraid I can't bring the hard nosed logic to the answer that I think you are expecting of me.

I have the shares because they were left me by my father. I certainly would not think of going out and buying any under normal circumstances However once ya year my wife and I are able to go out and have a dinner on the modest dividend and remember my old dad.

My interest would best be served by maintaining the status quo but plainly that is not an option.

Hence my post

Exactly where I am with mine. Would have bought them, no, can I sell them, tough call. But the option to get a few more at a discount is tempting. I use all my inheritance share dividends to buy presents for my parents Grandchildren through the year. It a nice way to remember them.