Assume PLC reaches 20/- (which is still less than 2x PBV)
If it declares 0.50/- quarterly dividends in the future (Then most likely it will go beyond that price too), then it will be a dividend yield of approx 16% at current prices (after tax)
If a person has bought in the last few weeks, then he/she will have unrealized capital gain of approx 80%
In such a case, will you exit booking capital gains, or will you hold for it's dividends?
Not only in this case, but for all high dividend stocks. First I faced this situation with CTC