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2/18/15

Yamana Gold (AUY) (YRI.to): Dripping wet

Here's the link to the NR from Yamana Gold (AUY) (YRI.to) this morning. Here's an extract, below the necessary commentary:
TORONTO, ONTARIO--(Marketwired - Feb 18, 2015) - YAMANA GOLD INC. (YRI.TO)(AUY) ("Yamana" or the "Company") today announced it has adopted a Dividend Reinvestment Plan ("DRIP") commencing with the previously announced first quarter 2015 dividend. The introduction of the DRIP responds to feedback from shareholders and provides further support to shareholders by offering an opportunity to increase investment in the Company without additional transaction costs by receiving dividend payments in the form of common shares of the Company.
Participation in the DRIP will be optional. Participants in the DRIP may obtain additional common shares of the Company by automatically reinvesting all or any portion of the cash dividends paid on common shares held by the DRIP participant without paying any brokerage commissions, administrative costs or other service charges.

They call it DRIP (we like cute acronyms) and then extol the advantages of getting your divis paid in shares, but do not be fooled by the narrative and do the math: SHARE-BASED DIVIDENDS ARE NOT DIVIDENDS, period. They're an automatic zero-sum game, they cost the company nothing and give shareholders nothing. In other words, another layer of corporate accounting BS.

UPDATE: Dear mailers, in order that I have no need to waste time on irrelevant words today, do the math first. Then if you still feel the need to write in, feel free. Though the likelihood is that if you've done the sums and still think there's a debate to be had, you did your math wrong.

UPDATE 2: