Do they save money on dividends if they have more shares because of rounding?
eg: let's say they have 100M shares and will pay US$ 2.15 per share. That's US$ 215M dollars paid.
Now they do a split and those 100M shares become 700M, dividend prices also are divided by 7 and become US$ 0.3071428571 per share, then they decide to round down to 30 cents per share.
It means they paid the same dividend as before but the total spent was US$ 210M
In other words they paid the same amount as before but rounding it down they saved 5M dollars or 2.3% of the money they could have spent otherwise.
If so this could also explain why 7. Since it's a prime number there are more chances that the division won't be round.
eg: let's say they have 100M shares and will pay US$ 2.15 per share. That's US$ 215M dollars paid.
Now they do a split and those 100M shares become 700M, dividend prices also are divided by 7 and become US$ 0.3071428571 per share, then they decide to round down to 30 cents per share.
It means they paid the same dividend as before but the total spent was US$ 210M
In other words they paid the same amount as before but rounding it down they saved 5M dollars or 2.3% of the money they could have spent otherwise.
If so this could also explain why 7. Since it's a prime number there are more chances that the division won't be round.