In past 2 years, SAN used to issue new shares to holders and wanted holders to treat these new shares as dividends. (They can sell new shares for you, so what you received is cash not shares.) If SAN needs capital for future growth, there are 2 possible ways - either issue new shares or increase debt ratio. I guess they have some troubles on increasing debt ratio and still want to have dividends to share holders, so this becomes the only way to fulfill both needs at the same time. But I don't like this approach when the intrinsic value is higher than current market price. They are diluted the value of this company. Even though some argued that if the RoR of the capital they get from new issues are higher thant WACC, they are increase company value. But since the interest rate is kept at this half-century low, borrowing shall be a better way to increase company value than issuing new shares. However, I have to say that the dividend rate is quite goo...