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Song StoneCold asked 7 years ago

hi guys, what do u think of Vibrant Gp , formally know as freight link. When invested they are solely involved in logistic but now the business has somehow changed as they are also into real estate and financial services now. I see that their profits is growing every yr as well as the dividends. Also they are giving script div as a choice every yr. Is it wise to take up the script div or just take the div as in cash. 
Thx !

1 Answers
Victor Chng answered 7 years ago

Hi Song,    
 
I have heard of this company before but have not analysed them. When encountering a company that changes their business, you may want to ask these few questions:  

  1. What is the reason for the change in business?
  2. Is the management team still the same?
  3. Does the management have expertise in the new business?

As for choosing between scrip dividends or cash dividends, it depends on the situation. If the company is undervalued, I prefer to receive scrip dividends, but if it is fair or overvalued, I prefer to receive cash dividends because I can allocate the capital better elsewhere.