EEQ no mini-split

• •
•On the Bogleheads web site Pshonore keeps saying KMR and EEQ distrubutions are like something he calls a mini-split.  There  is no such thing as a mini-split.  As a distribution applies to KMR a payout in no way splits, or diminishes the shareholders ownership in the company.

• •
•There is nothing mini about a fractional share of a company like Berkshire Hathaway, or 200,000 shares of a lower priced security.  For the Investor the concept of a mini-split does not exist.    It makes about as much sense as saying that because the quarterly distribution from Microsoft Corporation (MSFT), Coke (KO), or McDonald’s Corporation (MCD) is a small fraction of a dollar, it is a “Mini-dividend!”  If the +$5.00 annual dividend paid by KMP to KMR was to be considered mini, what would you call the $0.10 cents, fifty year dividend paid by Berkshire Hathaway?

• •
•  Stock splits and stock dividends, can fracture ownership. The math is the same as cutting up a Pizza pie.  In the case of KMR, KMP distributions, new issuance, fully paid up capital shares, nothing is deteriorated, nothing has been split-off from the original shares.  They do not reduce or dilute.  It is as if they were giving you an extra piece.   A KMR stock dividend is all about addition, not subtraction.