DUCA (bonus shares) an investment?

hcg feb 08, 2014cwb feb 08 2014

You do not need to pay for bonus shares, you get them “for free” provided you do a certain amount of business. When it comes to share based incorporated companies you typically have to pay to get the shares (except for DRIPs etc. etc.) The above two graphs are of Home Capital Group, HCG and Canadian Western Bank, CWB. HCG focuses on table crumbs from the big banks and CWB finances all things yellow that smell of diesel fuel.Both are, shall we say, focused. Inserted in both charts is a red line that represents the value of bonus shares that were introduced in 1998 or 9. The comparisons are not entirely fair but in a very broad brush sense they are, particularly when going back 14 years or so.  The question here is what is better, getting shares for free or paying for them. Can you spot the winners ??